Use His Money To Pay For His Care

Laura and her husband just found out Laura's father-in-law is terminally ill. He wants Laura and her husband to buy a home near them, and he would rent it from them. Should they do this?

QUESTION: Laura in Denver and her husband have $20,000 in debt left. They just found out Laura’s father-in-law is ill with less than two years to live. He wants Laura and her husband to buy a home near them, and he would rent it from them. Should they do this even if he gives them money for the down payment? Dave says no way.

ANSWER: I wouldn’t do it at all. I wouldn’t go $180,000 in debt to protect $20,000. It’s a really bad idea. He needs to rent something inexpensively. If he uses some of the $40,000 for his care because he’s provided care by someone, that’ll be okay. He needs the care.

It’s weird how people take a different tact. They don’t want to pay for their care. They don’t mind paying for food at a restaurant. They don’t mind paying for a car. But they don’t want to pay for their care. I’m okay with using this $40,000 for care and renting a house. That’s what I would do.