Posted on: 07th Nov, 2007 04:14 am
My elder brother has suggested that my grandparents take a reverse mortgage and said that the bank would give the money on a monthly basis. After they die, the home would be sold and he bank would take the money and if there's any profit then tat can be divided among the children. Is it so? They are nearly 75 years old and have health problems too. They wouldn't even think about selling their homes..they have earlier applied for medicaid. They have a life estate on the property with my elder brother (the 3 are on title). Will the medicaid and life estate pose a problem in getting reverse mtgs?
Welcome Poco,
As far as I know, the funds from your reverse mortgage are non-taxable. Thus, it is not counted towards income or affect Social Security or Medicare benefits. It is not even counted as your income for Medicaid benefits eligibility.
As far as I know, the funds from your reverse mortgage are non-taxable. Thus, it is not counted towards income or affect Social Security or Medicare benefits. It is not even counted as your income for Medicaid benefits eligibility.
In my opinion if you are not a full time worker and a retired fellow then it will surely not affect you in any case.
Hi my parents are in the process of doing the reverse mortage and my mom wants all nine of the adult children to know but my dad doesn't. the family home has alot of centiments. I'm afraid it will be hurtful when they find out about the reverse mortage when my parents are gone. Do you recommend all the children to knowing.
Hi mary,
I hope it's your parents who would be on the property deed while they take the reverse mortgage. In such a situation, it's not mandatory for your parents to inform their children about the reverse mortgage. It would solely the borrower's decision whether or not he would inform others about the mortgage.
Take care.
I hope it's your parents who would be on the property deed while they take the reverse mortgage. In such a situation, it's not mandatory for your parents to inform their children about the reverse mortgage. It would solely the borrower's decision whether or not he would inform others about the mortgage.
Take care.
my mom is wanting to sell her house and move to a better area is selling the house going to affect her benifets she was told she would have to repay everything from the sell
She need to pay the money if she took a reverse mortgageand the rest she can keepit
hi my mothers husband just recently passed away. She is 63 years old and recieves medicade and medicare. Her husband left her hm to her and has a life estate she is scared if she sells it her medicade and medicare will be affected. Her estate has not been probated as of yet. She wants to know how does she go about selling the land and home that is on it.
How much equity is left in the home after she pays back the Reverse Mortgage lender? If there's any equity, all of it is hers, and Medicaid benefits can be impacted, but Medicare and Social Security will not.
She's medi-medi and there's a reason for that and you don't want to disrupt her Medicaid benefits. She needs to review her situation with an Estate Planning Attorney, so he can guide her so her benefits aren't affected negatively.
She's medi-medi and there's a reason for that and you don't want to disrupt her Medicaid benefits. She needs to review her situation with an Estate Planning Attorney, so he can guide her so her benefits aren't affected negatively.
how dose life estate effect medicaid
Life Estates have no effect on Medicaid. It's just a method of holding Title to your home. Medicaid is effected by income and assets.
Try soem fo these posts
http://www.mortgagefit.com/reverse/medicaid-lifeestate.html
http://www.mortgagefit.com/texas/ladybirddeed-medicaid.html
http://www.mortgagefit.com/texas/medicaid-inheritance.html
http://www.mortgagefit.com/reverse/medicaid-lifeestate.html
http://www.mortgagefit.com/texas/ladybirddeed-medicaid.html
http://www.mortgagefit.com/texas/medicaid-inheritance.html
Can I get a life estate AFTER getting a reverse mortgage? I am about to apply for medicaid and I dont want them to put a lein on the house but I already have the reverse morgage.
>>I dont want them to put a lein on the house but I already have the reverse morgage.
Title can't be changed once you get a Reverse Mortgage, unless you receive permission from your Lender.
You'll also want to be aware of the 5 year look-back period and if you've been impacted by the Reverse Mortgage. You'll be okay if you received your cash via the Credit Line and/or Monthly Payment, but may be impacted negatively if you received a lump sum. You should review your scenario with an Estate Planning Attorney who understands how Reverse Mortgages work, before making a final decision.
Title can't be changed once you get a Reverse Mortgage, unless you receive permission from your Lender.
You'll also want to be aware of the 5 year look-back period and if you've been impacted by the Reverse Mortgage. You'll be okay if you received your cash via the Credit Line and/or Monthly Payment, but may be impacted negatively if you received a lump sum. You should review your scenario with an Estate Planning Attorney who understands how Reverse Mortgages work, before making a final decision.
Thanks. Do you think I will have any problems with my attorney getting permission from the lender? I would think the lender would try to avoid dealing with a lein placed by the state.
I've never heard of anybody changing their Title after they got their Reverse Mortgage, so I don't know. However, the worse they can do is say "no", so it's worth it to ask. The position you're in right now isn't all that bad either, that's why you need to review your scenario with an experienced Estate Planning Attorney that throughly understands how Reverse Mortgages work.
Your home can be used to off-set benefits you've received from the Medicaid system, thus the requirement for a lien. A Reverse Mortgage depletes the retained equity in your home, so there may not be any equity left in your Estate to pay them back, if you live long enough. That's not a bad position to be in. A Reverse Mortgage enables you to convert your equity into cash for your use while you're alive - instead of providing it to the Medicaid system after you've passed.
Your home can be used to off-set benefits you've received from the Medicaid system, thus the requirement for a lien. A Reverse Mortgage depletes the retained equity in your home, so there may not be any equity left in your Estate to pay them back, if you live long enough. That's not a bad position to be in. A Reverse Mortgage enables you to convert your equity into cash for your use while you're alive - instead of providing it to the Medicaid system after you've passed.