Reverse Mortgage Guide

Many people are discomforted with reverse mortgages because we all want time to hold still and also because we worry about our estate and what we will leave to the people and institutions we value.

Can you have your financial cake and eat it also?

One idea to consider is that if you want a reverse mortgage you may also want to consider life insurance. The proceeds of life insurance are generally tax free and outside probate. If you have enough life insurance to cover a reverse mortgage and all interest costs then it becomes possible to get money from your home without paying an income tax — and to repay the debt with proceeds that are not taxed. This means you can leave your home to your heirs or you can leave more moeny for any purpose.

As always, there are complications. For details, speak with an attorney who specializes in elder law as well as several insurance brokers.

This entry was posted on Friday, July 6th, 2007 at 2:32 am and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.