By Jessica Solomon
Recently, Chelsea Pope 🌻—a dedicated professional navigating the complex world of senior care—was on a call with Mark Maimon, Mortgage Strategist and a well-known expert in senior financing solutions. Their conversation underscored an urgent reality for families across America: the high cost of not knowing.
Chelsea had just worked with a family in Orange County, assisting in the placement of a 97-year-old woman into an assisted living community. The woman had purchased her modest home in the 1950s for around $50,000. When it came time to sell the property to cover long-term care expenses, the family did what millions of others do—they listed the house and sold it.
What they didn’t do was consult a tax professional or financial advisor. And unfortunately, no one else involved in the transaction flagged the issue of a step-up in basis or capital gains implications. Not the family, not the escrow officer, and—perhaps most notably—not the real estate agent.
After the sale closed, the family received a devastating surprise from the IRS: a tax bill exceeding $1 million dollars.
It was entirely unnecessary.
A Missed Opportunity to Educate
Mark Maimon, whose team at SeniorFinancingSolutions.com works specifically with seniors and their families, wasn’t surprised—but he was deeply concerned. “We see it all the time,” he shared with Chelsea. “People make decisions quickly during times of stress, and without proper guidance, those decisions become very expensive mistakes.”
What was missing in this case was proactive advice. Had the family been informed about the step-up in basis—a tax provision that adjusts the original purchase price of an inherited asset to its market value at the time of inheritance—they could have structured the sale differently or even avoided capital gains altogether.
Where Was the Realtor?
Chelsea’s key question was one many professionals are now asking: Where was the real estate agent in this? More than a transaction coordinator, realtors often serve as trusted advisors to families navigating downsizing, relocation, and aging transitions. Shouldn’t there be a responsibility—at the very least—to alert clients to the financial implications of a sale of this magnitude?
While realtors aren’t tax professionals, being attuned to common senior scenarios and urging clients to seek professional tax guidance should be standard practice—especially in transactions involving long-held family homes.
A Shift in Awareness
Chelsea Pope came away from the experience more informed, more alert, and more determined. “This could have been avoided. Going forward, I’m tuned in. I’m not going to let families make blind decisions that benefit no one but the IRS,” she said.
With senior care costs climbing and older adults living longer than ever, the intersection of housing, healthcare, and financial planning is more critical than ever. It’s not just about where a senior will live next—it’s about how the transition is financed, protected, and planned.
Moving Forward: Financial Literacy as a Form of Care
This cautionary tale is not just about taxes or title transfers—it’s about what happens when professionals operate in silos instead of as a team. It’s about how easily one million dollars can vanish when no one is watching out for the family as a whole.
Let it be a wake-up call: If you’re working with older adults—whether as a care consultant, social worker, financial advisor, or realtor—it’s time to elevate the standard of care beyond your lane. Ask the questions. Share the resources. Encourage the second opinion.
Because sometimes the best thing you can do for a family… is help them not write a check to the IRS.
