Chiming in with one thought - you said your parents have a two-story house. Do they own it free and clear (or will they soon)?

People above a certain age who have home equity and need to pay for long term care (i.e. anything not covered by Medicare in certain situations) often have the opportunity to take out what's called a "reverse mortgage," which allows them to draw on that built-up equity month to month. At the end, there's not much left over, which could be an issue if you would be expected to be inheriting the house, buuuuuut at the same time it's a way to draw cash when needed.

Medicare dot gov should have lots more detail on this.