Does reverse mortgage change estate planning?
My mother is thinking about reverse mortgage. Will we the family have to substantially alter the estate and estate planning if she does? Does reverse mortgage have any other tax issues?
Answered By: E. Ray Critchett, Zaino & Humphrey, LPA
The effects of a reverse mortgage should be fully discussed with the estate planning attorney as it can disqualify your parents from receiving their Social Security income if their total liquid assets are exceed federal limits. Also, upon death, the loan will need to be repaid which may significantly reduce the amount of assets being passed on to the heirs. Unfortunately, there is not a quick simple answer.
You may contact our office to schedule an appointment if you have further questions or if you need assistance with this issue.
Answer Applies to: Ohio
Replied: 9/7/2010
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
You may contact our office to schedule an appointment if you have further questions or if you need assistance with this issue.
Answer Applies to: Ohio
Replied: 9/7/2010
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
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