Tax Guru-Ker$tetter Letter

Friday, May 23, 2003

Reverse Mortgage Can Really Help Seniors

One of the most frustrating things for me has long been trying to convince seniors that it's not a sin to tap into the equity in their homes and enjoy their lives a little before they pass away. Even with a mortgage, their heirs will still be receiving very lucrative tax free windfalls when they go. They shouldn't feel the least guilty about using some of their own wealth while they are alive, in spite of pestering by greedy kids who want their parents to live the most Spartan lifestyles to preserve their inheritance.

While reverse mortgages are useful methods of getting access to equity, a more effective approach is often to borrow a large lump sum, especially with current low interest rates, stick half in the bank from which to service the debt for the rest of the borrower's life, and play with the other half.

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 5/23/2003 01:41:00 PM Send this post: