A growing number of families are taking advantage of a government-insured reverse mortgage to help their senior members prolong their independence
A reverse mortgage can provide the funds to help senior family members remain at home and enhance their ability to direct their own care
Can Mom and Dad Still Leave Their Home To Their Children? Yes, with proper planning, they certainly can. One way to make sure that heirs receive the value of the home is for the seniors to purchase life insurance using the proceeds from the reverse mortgage. Some seniors end up doubling or tripling the value of their estate for their heirs because they use the reverse mortgage proceeds to pay the life insurance premiums. This way they never have to touch a penny of their savings, investments, or current income to increase the value of their own estate. This also helps the heirs, because inheritance passed on through life insurance (beneficiary designation) bypasses probate, and taxes!
