For many families, moving into care Chicago seniors face is a sudden decision, not a planned one. A hospital stay turns into a rehab stay, and rehab turns into a permanent move. Meanwhile, the house sits empty. As a SRES®, this is a situation I want every homeowner to feel prepared for, so here’s exactly what happens next.
Every family’s situation looks a little different, but the core questions tend to repeat themselves again and again. Who can legally act on the property? What happens to the ongoing costs? And how does this decision fit into the bigger picture of paying for long-term care?
The House Does Not Sell Itself
An empty home still has a mortgage, insurance, property taxes, and utilities to pay every month. Those costs continue whether anyone lives there or not. Many families do not realize how quickly an empty house becomes a financial drain on top of care costs.
Care facility costs run high too, often reaching several thousand dollars a month depending on the level of care needed. Combining both expenses at once puts real pressure on a family’s finances within just a few months, sometimes faster than anyone expects.
The first question is always the same. Who has legal authority to sell the home if your loved one cannot sign documents themselves? This is where planning ahead makes all the difference.
Power of Attorney Comes First
If your parent already signed a Power of Attorney for Property, the named agent can typically sell the home on their behalf. According to Illinois Legal Aid Online, this document lets a principal give someone else the ability to handle their money and make financial decisions for them. That authority includes real estate transactions in most cases, unless the document specifically limits it in writing.
Without that document in place, families often face a much harder path. A court may need to appoint a guardian before anyone can legally sell the property. That process takes time. It costs money. It adds stress during an already difficult season.
If your family has not set this up yet, help exists. The Illinois Department on Aging connects residents with legal assistance through local Area Agencies on Aging, often at low or no cost. Reaching out early, even before a crisis hits, gives your family more options later.
Renting Instead of Selling
Selling is not the only option. Some families choose to rent the home instead, especially if a spouse still lives there or if the market timing feels wrong. Rental income can help offset care costs while keeping the property as a long-term asset.
This path requires more ongoing management than selling outright. Someone needs to handle tenants, repairs, and paperwork. That workload is not always realistic for a family already stretched thin between hospital visits, care decisions, and their own daily responsibilities.
A third option exists, too. Some families keep the home vacant temporarily while they decide, covering the carrying costs short-term. This buys time but rarely works as a long-term solution once care costs accumulate month after month, quietly eating into savings meant for care itself. An empty home also carries its own risks, including vandalism, burst pipes, and lapsed insurance coverage if nobody checks on it regularly.
Paying for Care Changes the Calculation
Long-term care is expensive, and many families eventually look into Medicaid to help cover costs. Medicaid has strict rules about assets, including home equity, so timing a home sale correctly matters more than most people expect.
Selling too early or too late can both create real financial problems for a family already stretched thin. Selling at the wrong moment might trigger a penalty period before benefits kick in, delaying help exactly when your family needs it most. Illinois also has a five year lookback period for certain asset transfers, which makes early planning especially valuable, since transfers made too close to a Medicaid application can trigger penalties.
An elder law attorney can walk you through how a sale might affect Medicaid eligibility in your specific situation. This is not a decision to make without professional guidance, since mistakes here can delay benefits for months.
A Real-World Example
Consider a Chicago family whose father moved into skilled nursing suddenly after a stroke, with no time to plan ahead. He had signed a Power of Attorney years earlier without much thought, almost as an afterthought during an estate planning appointment. That single document meant his daughter could list the house within weeks instead of waiting for a lengthy guardianship process.
She worked with an agent who understood the timeline pressure and coordinated the appraisal, repairs, and listing within a single month. The sale funded eighteen months of his care without a single delay, and she never had to touch her own savings to bridge the gap. Looking back, she said the hardest part was not the paperwork. It was simply knowing where to start.
What If There Is No Power of Attorney
If no POA exists and your loved one can no longer make decisions, a court-appointed guardian may become necessary. This process involves filing a petition, attending a hearing, and receiving ongoing court oversight of the property and finances going forward.
The court typically requires regular reports on how the property and finances are managed. This oversight protects your loved one, but it does add paperwork and occasional delays that a POA would have avoided entirely. Some families find the process manageable with the right attorney. Others find it genuinely stressful on top of everything else already happening.
It is slower and more expensive than acting under an existing POA, but it is still a workable path. An elder law attorney can guide your family through each step, and a title company will need to see the court order before closing.
Practical Next Steps
Start by locating any existing legal documents, including a Power of Attorney, will, or trust. If none exist, consult an elder law attorney promptly rather than waiting for the situation to become more urgent.
Next, get a clear picture of the home’s current value and condition. That information shapes every decision that follows, from timing a sale to deciding whether renting makes more sense for your family.
Notify the mortgage company, insurance provider, and property tax office of the change in occupancy too. An empty home sometimes needs a different insurance policy than an occupied one. Skipping this step can create coverage gaps at the worst possible time. A quick phone call now can prevent a denied claim later. Treat this step as urgent, not optional.
Some families are also weighing whether the home sits in a trust. Understanding how a trust affects the sale process in Illinois can clarify what steps come next. Avoiding probate altogether is another common goal. Learning what a TODI is and how it helps Illinois homeowners can offer another path worth discussing with an attorney.
You Do Not Have to Figure This Out Alone
This situation combines grief, logistics, and financial pressure all at once. Most families making this decision have never done it before and do not know where to start.
It is completely normal to feel overwhelmed by all of these moving pieces at the same time. You do not need to solve everything in the first week, and rushing rarely leads to the best outcome anyway. Give yourself permission to move at a pace that still lets you make sound decisions.
As a SRES®, I coordinate with elder law attorneys, appraisers, and senior move managers. That way, families do not have to manage every piece alone. The house is one part of a much bigger transition. It deserves careful, informed handling rather than a rushed decision made under stress. A steady plan, even a simple one, makes this season easier to carry.
When you are thinking about your next move, the free resource library has practical guides covering every aspect of later-life housing, from downsizing and aging in place to senior living options, care alternatives, and the resources you need to make confident decisions. And if you would like to understand how I work with homeowners over 50, the Homeowners 50+ page is the right place to start.
Prefer watching instead of reading? This auto-generated video summarizes the key points discussed in this article.
Disclaimer: This blog is for educational purposes only and does not constitute tax, legal, or financial advice. Every homeowner’s situation is unique. Please consult a qualified CPA, tax advisor, or estate attorney before making any decisions related to the sale of your home.
If you’re starting to think about what comes next, you don’t have to figure it out on your own. Sometimes it helps just to talk things through.
You can always take the next step at your own pace, with no pressure and no expectations. I’m always happy to help you get a clearer picture of your options.
Michelle Williams is a REALTOR® and SRES® serving Chicago and the South Suburbs, helping homeowners 50+ make confident decisions about their next move.