Financial Fears FAQ: The Questions Seniors 75+ Ask Before Buying a Cooperative Share

Moving into a senior co-op at 75 or 80 is a big step. It's different than moving at 65. You might think more about your health or what you'll leave for your family.

These are important questions. We've put together this guide to help you and your family find the answers you need.

This FAQ is for you and your adult children. We want to help you feel sure about your next move.

1What happens to my co-op share if I need more care?

Your co-op share is yours, no matter where you live. If you need to move to a place with more help, like memory care, you have two main choices:

• Sell your share: You can sell it and use the money to pay for your new care.
• Rent it out: Some co-ops let you rent your unit to someone else. You'll need to check the co-op's rules (the bylaws) first.

Most people choose to sell. If the co-op's value has gone up, you could get a lot of money back. This could be $200,000 to $400,000 or even more. It depends on when you bought it and the current market.

2Can I leave my co-op share to my children?

Yes, you can. Your share is your personal property. You can name your children as heirs in your will or trust.

If your child is old enough and wants to live there, they can apply to the co-op board. If they don't want to live there or aren't old enough, they can sell the share.

There's also a tax benefit. When you pass away, the "cost basis" (the value used to calculate taxes) of the share resets to its current value.

This is called a stepped-up cost basis. It means your children may pay much less in taxes when they sell it.

3What if I run out of money?

It's scary to think about running out of savings. But there's help. Minnesota has programs to help seniors with lower incomes. These include the homestead exemption and a program to delay property taxes.

If those aren't enough, you can sell your share. The money you get from the sale is usually a large amount that can help you.

4What if the co-op goes broke?

This almost never happens. To stay safe, we help you look at the co-op's health before you buy. We check if they have enough savings (a reserve fund) and a safe mortgage.

A good co-op has many people living there and small fee increases. This keeps the risk very low.

5How does a co-op affect Medicaid?

The rules for Medicaid see co-op shares as personal property. This is different from a house, which is real property. This can change how you plan for the future.

Medicaid rules are tricky and change from state to state. It's a good idea to talk to a lawyer who knows about senior laws before you decide.

6Is this the right time to buy?

Waiting often costs more than you think. Every month you stay in a big house is a month of high costs. You're paying for repairs and work you don't need to do anymore.

You can read more in our article on The Real Cost of Waiting. Moving now can save you money and stress. We're here to help you make the best choice for your future.

Have a house to sell first? I’ll help you time it. See what your house is worth or book a free 30-minute call.