When an elderly parent moves into a nursing home or residential care facility, the family home can suddenly become vacant. This situation, which is both practical and emotionally challenging, quickly raises an important question: should you sell your parent's house after they move into a care home, and how can you do so to finance long-term care costs?
Between the parent's legal capacity, joint ownership between siblings and tax considerations, several legal rules govern this type of sale. This guide explains the procedures, precautions and tax implications you should understand before getting started.
Key takeaways
- If the parent is still legally capable of making decisions, they remain the sole decision-maker regarding the sale of their home, even after moving into a care home.
- If the parent is under guardianship or curatorship, selling the property requires authorization from the guardianship judge or the family council.
- The proceeds from the sale are often used to cover nursing home expenses, which can represent a significant monthly cost.
- When several children jointly own the property, the agreement of all co-owners is generally required before the property can be sold.
- A vacant property should be secured and covered by insurance appropriate for an unoccupied home.
- Capital gains tax relief for a principal residence may still apply if the property is sold within a reasonable period after the move into a care home.
An Empty Family Home: A Common and Emotional Situation
A move into a nursing home or residential care facility almost always raises the same question: what should be done with the now-vacant property?
In most cases, this is not a decision that has been planned for years. Instead, it often follows an unexpected hospitalization or a sudden loss of independence. The family home—sometimes occupied for decades—becomes a property that must be managed remotely while ongoing expenses such as property tax, insurance and maintenance continue even though nobody lives there anymore.
Selling a parent's house after a move into a care home is therefore not simply a financial decision. It also represents an emotional milestone for the family. From a practical perspective, selling the property is often necessary to finance accommodation costs, which usually represent a substantial and long-term expense.
Understanding who has the legal authority to decide, the legal framework involved and the expected timeline helps families approach this process with greater confidence.
Who Can Decide to Sell the House?
The first question is whether the parent still has legal capacity to make decisions. The legal framework differs significantly depending on whether they are still capable of managing their own affairs or are protected under a legal guardianship arrangement.
The Parent Still Has Legal Capacity
As long as the parent retains full mental capacity, they remain the sole owner and sole decision-maker regarding the future of their property.
No special authorization is required. They may appoint their children to act on their behalf, sign the documents personally or grant a notarized power of attorney if they cannot travel to the notary or meet with the real estate advisor.
In this situation, the children may assist throughout the process, but the legal decision to sell the house belongs exclusively to the parent, even if they are physically frail or dependent on others for everyday activities.
From a legal standpoint, this is the simplest situation. However, it often requires good communication within the family, as siblings may disagree about whether or when the property should be sold, even though the final decision legally belongs to the parent as long as they are capable of expressing their wishes.
The Parent Is Under Guardianship or Curatorship: Court Approval Is Required
When a parent is subject to a legal protection measure, such as guardianship or curatorship, selling their home is subject to stricter legal rules.
Under curatorship, the protected adult remains involved in the decision-making process but must be assisted by their curator. The curator cannot sign the sale documents alone.
Under guardianship, the guardian legally represents the protected person. However, selling real estate is considered a significant legal act and therefore always requires prior authorization from the guardianship judge or, where applicable, the family council.
This authorization is intended to protect the interests of the vulnerable adult. The judge verifies that:
- the sale is justified (for example, to finance nursing home fees);
- the proposed sale price reflects the property's market value;
- the transaction is in the protected person's best interests.
In practice, a professional property valuation is almost always requested to support the application submitted to the court. Obtaining an online property valuation can provide a useful first estimate before arranging a formal appraisal.
Because court approval is required, this process may extend the sale timeline by several weeks or even a few months. Families should therefore anticipate these additional delays, particularly when care home fees must be paid quickly.
Using the Sale Proceeds to Finance Nursing Home Costs
Monthly nursing home fees remain a significant financial burden for many families, even after deducting any public financial assistance that may be available.
As a result, selling a parent's house after they move into residential care is often the most practical way to generate the funds needed, particularly when retirement income alone is insufficient to cover ongoing expenses.
The proceeds from the sale generally provide enough funds to finance several years of care. They may also be invested in secure financial products to generate regular income or simply be used as required through a dedicated account managed by the parent, an appointed representative or a legal guardian.
Where the parent is under legal protection, the proceeds always remain the protected person's property and must be used solely for their benefit, under the supervision of the judge or family council.
For this reason, it is advisable to begin preparing the sale as soon as admission to a care home is confirmed rather than waiting until financial pressures become more urgent.
Joint Ownership Between Children or Property Already Transferred
Two common ownership situations can make the sale more complex:
- the property is jointly owned by several children;
- ownership has already been transferred through a gift or estate planning arrangement before the parent entered the care home.
When several children jointly own the property—for example after the death of one parent—the sale generally requires the agreement of all co-owners, unless a court orders otherwise in exceptional circumstances.
Disagreements between siblings regarding the asking price, the timing of the sale or the choice of real estate advisor are common and may significantly delay the sale and, consequently, the financing of the remaining parent's care.
If family relationships are already strained, it may be worthwhile exploring the legal procedures available to resolve a blocked inheritance before putting the property on the market.
If ownership has already been transferred while the parent retained a life interest (usufruct), both the usufructuary and the bare owner(s) must agree to the sale. The sale proceeds are then divided according to the respective value of the usufruct and the bare ownership rights.
This situation is similar to selling inherited property, where co-owners must agree on both the sale itself and the distribution of the proceeds.
In every case involving joint ownership or split ownership rights, clarifying the property's legal status before marketing it is strongly recommended to avoid delays during negotiations.
Practical Precautions for a Vacant Property
A house left unoccupied for several weeks or months presents specific risks that should be addressed without delay.
Emptying and Securing the Property
It is advisable to gradually remove personal belongings while keeping important documents, such as title deeds, contracts and items of sentimental value, safely stored.
From a security perspective, ensure that doors and windows are properly locked, turn off the water supply if the property will remain vacant for an extended period and arrange for someone to collect the mail regularly. These precautions help reduce the risk of damage, frozen pipes or unlawful occupation.
Updating Home Insurance
An unoccupied property is treated differently by insurance providers.
It is essential to inform your home insurance company that the property is vacant, as a standard owner-occupied policy may exclude certain types of cover—such as water damage or fire—if the insurer was not notified.
Depending on the insurer, additional conditions may apply, including regular inspections of the property.
Failing to declare that the property is vacant could result in a claim being refused if damage occurs while the home is empty and awaiting sale.
Tax Considerations: Capital Gains Tax Relief and Selling Deadlines
From a tax perspective, the sale of a property that was the parent's main residence is generally fully exempt from capital gains tax, regardless of the amount of any gain.
However, moving into a nursing home means the property is no longer considered the owner's principal residence because they no longer live there.
The French tax authorities nevertheless accept, under certain conditions, that the principal residence exemption may continue to apply if the property is sold within a reasonable period after the move—typically around one year—provided that the property has remained vacant and has not been rented out or occupied free of charge during that time.
What constitutes a "reasonable period" is assessed on a case-by-case basis, taking into account factors such as:
- whether the property was genuinely placed on the market;
- the efforts made to sell it;
- any difficulties encountered in finding a buyer.
After this period, any capital gain is generally taxed under the rules applicable to second homes, although standard reductions based on the length of ownership may still apply.
For this reason, families should begin the sale process as soon as possible after the parent moves into residential care in order to maximise the chances of qualifying for the principal residence exemption.
If the property has remained vacant for a long time before being marketed, the tax treatment becomes similar to that applicable when selling a second home, potentially resulting in a less favourable capital gains calculation.
Consulting a notary before signing the final deed of sale is strongly recommended to secure the tax treatment of the transaction.
Work with an Optimhome Real Estate Advisor
Selling the home of a parent who has entered a nursing home involves emotional, legal, financial and family considerations, making professional support especially valuable.
A local Optimhome real estate advisor can manage every stage of the process, including:
- estimating the property's value;
- preparing the documentation required for any guardianship court procedure;
- marketing the property;
- organising viewings;
- negotiating with prospective buyers;
while taking into account the often urgent timetable associated with financing nursing home fees.
Professional support is also particularly useful when family members live far from the property or when the parent is no longer able to travel.
To compare similar properties currently available in the area, you can browse the property listings offered by Optimhome advisors, which provide a useful indication of local market prices.
For an initial estimate of your property's value, an online property valuation offers a quick and convenient starting point before refining the valuation with a local real estate professional who knows the market in depth.
selling your home with OptimhomeMore broadly, allows you to benefit from the expertise of a nationwide network while working with a dedicated local advisor.
Conclusion
Selling a parent's home after they move into a nursing home combines practical necessity, legal requirements and emotional considerations.
Keeping the following key points in mind can help make the process smoother:
- Confirm the parent's legal status—whether they have full legal capacity, are under curatorship or guardianship—as this completely determines the procedure to follow.
- Anticipate any required court authorization and allow sufficient time if judicial approval is necessary.
- Secure the vacant property promptly and update the home insurance policy.
- Clarify the ownership structure if the property is jointly owned or has already been transferred through a gift or estate planning arrangement.
- Begin the sale without unnecessary delay to preserve, where possible, the capital gains tax exemption available for a principal residence.
During what is often an emotionally demanding period, working with an experienced real estate professional—and, where appropriate, a notary—helps secure every stage of the transaction, allowing the family to focus on what matters most: the well-being of their loved one.
FAQ
Who decides whether to sell the house if my parent is living in a nursing home but still has full mental capacity?
As long as your parent retains legal capacity, they remain the sole decision-maker regarding the sale of their home, even if they now live in a nursing home. Their children can assist with the process, but no court authorization is required.
Is court approval always required to sell the home of a parent under guardianship?
Yes. Selling real estate owned by someone under legal guardianship requires prior authorization from the guardianship judge or, where applicable, the family council. This approval ensures that the sale is in the protected person's best interests and that the proposed sale price reflects the property's market value.
Can the house be sold if not all the children agree?
If the property is jointly owned by several children, the agreement of all co-owners is generally required before the property can be sold. Where disagreements persist, legal proceedings may provide a solution, although this usually extends the overall timeline.
Is the sale still exempt from capital gains tax after moving into a nursing home?
The principal residence capital gains tax exemption may still apply if the property is sold within a reasonable period—generally around one year—after the move into residential care, provided the property has remained vacant during that time. After this period, the sale is normally taxed under the rules applicable to second homes.
How can you protect a house that remains vacant while it is being sold?
It is recommended to secure the property by locking all doors and windows, turning off the water supply if necessary, arranging for mail to be collected and notifying the home insurance provider that the property is vacant. These measures help reduce risks and prevent potential insurance disputes.
Must the proceeds from the sale only be used to pay for nursing home care?
Where the parent is under legal protection, the proceeds from the sale must always be used solely for their benefit, under the supervision of the guardianship judge or family council. This naturally includes financing nursing home accommodation and related care costs.
How long does it usually take to sell a house in this situation?
The timeline depends on the parent's legal status. A standard property sale can proceed normally if no legal protection measures are in place. However, where court authorization is required, the process may be extended by several weeks or even a few months before the sale can be completed.
Author :
Fabrice DOBROWOLSKI - Optimhome Network Development Director
Optimhome offers you personalized support for your real estate project. Benefit from all my advice, based on several years of experience, to ensure the success of your project.
