After reading the gift article, I am prepared to comment.
”They approached their children and grandchildren, seeing if any wanted to move in with them, help maintain the house and inherit it when they died. None did.”
Since they are in their 80’s, they have been thinking about this a long time. “They are in relatively good health, eat well and exercise often, but started exploring housing options while in their 70s. They talked about chairlifts and home elevators but decided those solved only one issue—mobility.” That is the main issue to be sure - but their solution leaves options for live-in care while enjoying what they want - currently using only parts of the house is not a ‘problem’, although they are paying taxes on a large home - although they may have prorated property taxes as seniors or with a disability status.
It is not that the house is undesirable or will not sell for a reasonable amount once the couple dies or chooses to sell - it has more to do with their children and grandchildren having independent lives and not wanting to commit to something they don’t want to follow through with for a long period of time (20 years?). They seem to be thoughtful people, and although eventually when their estate or a surviving spouse sells the home, the home value is going to be good although time will tell about the wisdom of these sunk costs. They don’t need care now and have not over their years thinking about their options.
They might not have any mortgage left and can cash flow the home equity loan payments. They don’t want to move and have found a way to continue to live in their home, preparing for less mobility and perhaps eventual care possibly moving in. Their financial resources perhaps will hold out for them to remain in their home until both are deceased - like many of us looking to 100-year life span with our financial resources. In a year or two, they may very well decide to pay off the home equity line of credit.
My brother hired a live in cook/housekeeper for my mom - this kind of help is available, but it takes networking. Mom had declining health in her 70’s and died at age 77.
This couple is active enough and aging. It seems they love their home and community, want to stay and have found a way to make the home work to stay with declining mobility and health. Yes, $300,000 is a lot more than most will need or want to spend. It is substantial but I think this is a one-time effort and within their means.
They don’t want to spend down with a move now to something in their area (like independent living/assisted living). They don’t want to trade off the costs to remain - they would be looking at higher costs at lesser living to move (their opinion and mine too). They don’t want to leave their home and are finding a plan and a way to stay. It seems the declining mobility is more of an issue for the husband (at this time) to have first floor master suite plans based on the stated physical activity the wife has. Say this arrangement works for the next 10 years - that is annually the $30,000/year plus the finance cost of the borrowed money, which weighs out against the options they don’t want at this point in time.
But as we all know, the health of people in their 80’s and upward can change quickly.
DH’s aunt and uncle both lived at home into their late 90’s. They were able to do so because there was transportation to their medical appointments and their daughter drove in and remained every weekend to do their cleaning/laundry and cook ahead food - there also was meals on wheels available. One son came for extended stays and one son lived in town. Aunt and uncle both were able to walk with walker for short distances and also used wheelchairs - the uncle didn’t need a w/c until after the aunt died. They had washer/dryer hook up/space in their kitchen area with new front load washer and dryer and had a generous back porch/sitting area with purchased metal ramps down to their detached garage/back-alley car access. It worked because of the daughter! The aunt was in a small BR on the main level, and the uncle still did steps to a bigger BR upstairs until after the aunt died and his eventual inability to do the stairs.