Financing senior care

Creative strategies to support your loved one’s transition into therapeutic residential care

Navigating the costs of senior care can feel overwhelming—but you’re not alone. At Woodhaven Homes, we believe every family deserves clarity, compassion, and options. Whether you're planning ahead or facing an urgent need, here are some pathways to explore.

Organize legal and health documents for peace of mind

Before diving into financial strategies, make sure your legal and medical documents are up to date. This protects your loved one’s wishes—and ensures smoother transitions if care needs change.  Ensure you have done your normal general physician and that all your vaccinations are up to date.  For our home and those licensed through DSS and VHDBS, you’ll have pre-admissions forms required and will be easier if regular check ups with the general physician are occurring.

Essentials to review with an estate attorney

  • Will and Living Will

  • Medical Power of Attorney

  • Financial Power of Attorney

  • Trusts and asset protection plans

This step doesn’t fund care directly, but it lays the groundwork for every decision that follows.

Leveraging Your Home’s Value

Many families in Northern Virginia have built up substantial home equity. That equity can become a powerful tool to offset senior care costs.

Reverse Mortgage

  • Allows homeowners 62+ to borrow against home equity

  • Funds can be received as a lump sum or monthly payments (talk to your lender)

  • Repayment is deferred until the home is sold or vacated

Limitations

  • One spouse must remain in the home

  • High fees and limited withdrawal amounts (typically 20–70%)

  • If both spouses need care, this option may not work

HELOC (Home Equity Line of Credit)

  • Flexible borrowing with lower fees than reverse mortgages

  • Monthly payments are required with a higher interest rate

  • Works well for families who want to retain ownership and control

Selling or Renting the Home

  • Selling can unlock significant funds

  • Renting provides ongoing income but requires rental oversight

Insurance Strategies

  • Your existing policies may offer hidden opportunities to fund care.

Long-Term Care Insurance

  • May cover home care, or adult day services

  • Coverage varies widely—review your policy carefully

  • Not all plans include residential care homes

Life Insurance Options

  • Life Settlement: Sell your policy to a third party for cash

  • Surrender Policy: Receive the accumulated cash value directly

  • Permanent Insurance Loans: Borrow against the policy’s cash value tax-free

  • 1035 Exchange: Transfer funds from one policy to another without triggering taxes

*Always consult a insurance agent and tax advisor before making changes.

Government & Veteran Support

·       While most senior care is privately funded, a few programs may help:

Social Security

  • Doesn’t cover senior care directly

Medicare

  • Covers up to 100 days of skilled nursing post-hospitalization

  • Does not apply to long-term residential care homes

VA Aid & Attendance

Putting It All Together

There’s no one-size-fits-all solution. Your best strategy depends on

  • Home equity and ownership status

  • Insurance coverage and policy type

  • Family dynamics and long-term care goals

At Woodhaven Homes, we’re here to help explore options, Our home offer the support your loved one deserves.