In this Elder Law Minute, Wes Coulson, Illinois and Missouri Elder Law attorney, discusses what the right situation is for someone to consider getting a reverse mortgage.
Should You Consider a Reverse Mortgage?
Hi, I’m Wes Coulson from Coulson Elder Law in St. Louis Missouri and O’Fallon Illinois, serving clients throughout the St. Louis metropolitan area and beyond, and this is your Elder Law Minute. As an elder law attorney, I’m often asked what I think about reverse mortgages. Are they a good idea?
My answer is they are, in the right situation. So, what is the right situation for someone getting a reverse mortgage? Here’s the prototype. If you have someone who has a house that is paid for, probably if they’re older worth quite a bit more than they bought or built if for however back when, and is struggling to pay their bills on an ongoing basis. The prototype for that is someone whose only source of income is social security, that seemed like a pretty reasonably good amount when they retired back when, but right now leaves them to the point where sometimes they’re deciding whether they should split pills to make them last longer, or can’t buy the foods that they want, or struggling to pay utility bills.
In that situation, don’t worry about an inheritance. Use the reverse mortgage to get money in to be able to have a decent life. Characteristic of a reverse mortgage, there are not any payments on that that will come due during your lifetime. It only gets paid off after you die, it gets paid off out of the proceeds from the sale of the house, and if those are not enough to pay off that mortgage in full at that point, then there is no further obligation for your family, whatever the house brings is the amount that’s going to pay off that mortgage. So, I hope this helps in your decision making. Thanks so much.
For more information about your residence and Asset Preservation, visit these articles:
- How Can I Protect My Residence from Long-Term Care Costs?
- Protecting Your Residence While Establishing VA Benefits
- Think Twice Before Deeding Your Residence to Your Children
“Your Trusted Advisor on the Elder Care Journey”
Coulson Elder Law is dedicated to providing families in the St. Louis area with their Elder Law needs. Our practice areas include Asset Preservation Planning, Veterans Benefits, Medicaid Eligibility, Alzheimer’s Planning, Special Needs Planning, Estate Planning and more. We understand the financial challenges you may face as you and your loved ones grow older. At Coulson Elder Law, our clients’ well-being is our number one priority. For immediate help, call (618) 632-7000 or (314) 567-9292, or Contact Us and we will get in touch as soon as possible.