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q THE REVERSE MORTGAGE AS AN ESTATE PLANNING TOOL
Can a Living Trust or other form of trust take out a Reverse Mortgage?
- Yes, but subject to the conditions of the trust document. The entire trust
document must be made available to the lender in order to approve the Reverse
Mortgage loan and in a manner that maintains the integrity of the trust.
Will any other part of the homeowner's estate be responsible for the
Reverse Mortgage debt?
- No. The Reverse Mortgage loan is non-recourse even if the equity is less
than the amount due.
Can the accrued interest be used to benefit the estate?
- Yes. In many instances this may be the case but you should consult with
your legal or tax advisor regarding these or other tax implications.
Are the proceeds of the Reverse Mortgage tax free, even if taken as one
lump sum?
- Yes. But please consult with your financial advisor.
Can the proceeds be used as a retirement or estate planning tool to purchase annuities,
life insurance, prepaid health insurance, etc. or any combination thereof?
- Yes. The use of the proceeds is at the discretion of the borrower and/or
the direction of the borrower's financial or legal advisors. The use of the
proceeds of the Reverse Mortgage is limited to the creativity and needs of
the borrower.
General Comments.
- The Reverse Mortgage may be used to provide funding for healthcare or
medical treatment.
- It may reduce the impact of estate taxes through the purchase of various other
insurance products.
- It may maximize the legacy of estate transfer.
- It may lower the total estate value subject to taxes.
- It may create estate deductions thereby enhancing the net value of the
estate.
- It could provide an added element of control to the estate plan.
- The proceeds of the Reverse Mortgage are tax free. (Consult your financial
advisor or tax
HOW DO I GET MORE
INFORMATION?
q Click Here or
call 1-888-332-2820 to get started today!
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