Would like to finish my basement for someone to live there and care for me when older and need care. I am not in assisted living or a nursing home. I own my home and 2004 car currently maintaining both. How do I handle an inheritance gift of $22,000? I receive $790 monthly, sole income, and also could finish basement apt to house a helper in future instead of going into a home or use a later model car.
It is much preferred for most to remain in their homes. The reality is it is very expensive. And to think that you may be able to find someone to care for you in exchange for room and board is not realistic, nor is it legal. Check with the IRS, these sorts of arrangements the caregiver is considered an employee, you would be paying a salary, social security, Medicare, taxes, etc for a live in. It does not sound like you have the resources for this sort of a care situation.
One thing we don't want to do as we age is transfer our difficulties onto someone else. It may be a better idea to sell the home and move into a senior community to provide the things you need. It is what I plan to do. Who needs the aggravation of managing and maintaining a house that has become too big? Houses are fine when there is family in it. They're a burden when it is just one or two.
So, IF you spent the inheritance on fixing up an apartment, what are you going to pay your caregivers with?
We ALL want the luxury of having our needs met the way we want them to be....but not necessarily the money to do so.
I'd tuck that money away and wait and see how you feel in a few years. Or fix up the apartment and use the money from rent for care in your home later. I don't know where you live or what you could get for rent...but having the renters be separate from your caregivers is not a bad idea. If you could get, say $800 a month in rent, you could use that towards caregiver expenses. Also, fixing up your home would increase its value if you needed to sell it. (A friend of mine is actually in the process of doing it. She will get $1300 a month in rent for a 1200 SF apt.)
How old are you? If you only receive $790 monthly, how do you pay property taxes and such on your home each year?
Do you have any medical issues at present? Are you in America? Is the $790 you receive a Social Security benefit? Do you have Medicare coverage? What about Medicaid coverage?
I think you would get better input if you can provide more details. In general, I think Jessie is right, and I think there is a better way to plan for your long term living arrangements rather than investing in and staying put in your house.
When it comes time that you need someone to help you as you age, then eventually the live-in caregiver would be doing the job of 3 full-time caregivers each and every day. That becomes physically and emotionally exhausting. Then you would need to hire someone new.
You would also need to pay the caregiver, and some States require overtime pay for someone who works over a certain number of hours each week. Plus, you would need to buy a "workman's comp" rider on your homeowner's insurance in case your "employee" gets hurt on the job. You could use a check paying service to do the payroll checks for you, for a fee.
My Dad had 3 full-time caregivers each day who each worked an 8-hour shift, and that cost climbed up to $20k a month. Dad found he could cut the cost more than half by going into Independent Living, then later into Assisted Living/Memory Care.
There is so much to think about.
I don't know how you manage to live on $790 a month and why you receive so little. I only worked long enough to have the required 40 credits but get over $900. Do you get any kind of supplement such as meals on wheels or Medicaid. I think a bettor idea would be to move into an apartment preferably with rental assistance, or assisted living if you can afford it. As well as your income do you have significant savings to pay for things like taxes, insurance and other essentials.
Also, make sure you do a radon test of the basement space, because if there is a higher than normal reading, you would need to have that fixed, as high radon can cause serious lung issues for anyone who sleeps down there.
And make sure you have windows in the basement that are large enough so that a fireman can climb through while wearing an oxygen tank.
Just more things to think about... [sigh]