Reverse Mortgages as an Estate Planning Tool


The Reverse Mortgage should be considered as an integral part of the estate plan. As a non-recourse loan that releases home equity and converts it into tax-free cash, there are no restrictions on the use of the proceeds, the borrower continues to own the home and no monthly payment is required for as long as the borrower resides in the home.

Funding for Healthcare or Long-Term Care Insurance
Most Americans recognize the need for a long-term care insurance program to both protect their assets and relieve any potential burden on their family. Many Seniors, when faced with this situation are forced to use their savings or impact their monthly income for long-term care coverage. A reverse mortgage allows seniors to stay in their homes, be self-sufficient, and not deplete existing savings or income.

Maximize Legacy Asset Transfer
While a home may hold a great amount of emotional value for a family, the reality is that in most cases, the property is sold after the owner’s death. The heirs are often forced to sell the property in a volatile real estate market with no guarantees. After the sale, which may drag on due to market conditions, heirs may be faced with inheritance and/or capital gain taxes on the proceeds. The net proceeds are often less than the perceived value of the home. If a reverse mortgage is used to purchase life insurance, this scenario typically translates into greater wealth transfer to the heirs.

Provide Funding for Estate Taxes
When the tax-free equity release is used to fund life insurance products, a reverse mortgage is a creative and effective way to secure the future for heirs. It gives homeowners, particularly those with substantial wealth built up in their homes, the comfort of having more control over their estate and assuring the legacy they leave retains its value by:
• Lowering the total estate value subject to taxes.
• Providing life insurance proceeds for the homeowner’s heirs to pay estate taxes.

WHAT IS A REVERSE MORTGAGE?

Reverse Mortgages allows a senior homeowner (62+) to exchange a portion of the equity in their home for a Tax Free Income. A Mortgage Reverse has NO Monthly Payments required for as long as you live. A Reverse Mortgage Specialist provides Tax Free Cash that can be used for any purpose. With a Reverse Mortgage you retain the Title to your Home. That means with Reverse Mortgages you can sell your Home at Anytime. Mortgage Reverse allows you to receive the Cash in Monthly Payments, A Lump Sum, A Line of Credit, or a Combination of the above. A Reverse Mortgage Specialist does not affect Social Security and Medicare. With a Reverse Mortgage there is No Income, Credit or Health Qualifications.

THE PROCESS OF REVERSE MORTGAGES

  • Educate yourself about a mortgage reverse.

  • Get a free information package about a Reverse Mortgage Specialist.

  • Speak with a qualified lender about your option of a Reverse Mortgage.

  • Consult a trusted family member or financial advisor about the benefits of Reverse Mortgages.

  • Schedule a counseling session with a third party, non-biased counseling group about a mortgage reverse.

  • Upon reaching a decision to pursue a Reverse Mortgage specialist complete an application with a qualified Reverse Mortgage.

  • The Reverse Mortgages will begin the underwriting process by ordering an appraisal, title work, and other related documentation.

  • The mortgage reverse is submitted for final approval and then is scheduled for closing at a location convention for you.

  • At funding of the Reverse Mortgage you receive your Tax Free Cash.