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Old 05-04-2015, 10:14 AM
 
8,870 posts, read 5,149,988 times
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Quote:
Originally Posted by Frihed89 View Post
The honorable option: sell your house to a child for $1.00 with a life-estate for yourself...long before you go on Medicare. Consult a lawyer, first.
How would this solve the problem of inadequate income?
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Old 05-04-2015, 10:50 AM
 
Location: Central Massachusetts
4,800 posts, read 4,856,396 times
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Quote:
Originally Posted by Frihed89 View Post
The honorable option: sell your house to a child for $1.00 with a life-estate for yourself...long before you go on Medicare. Consult a lawyer, first.

Interesting solutions, though as mj says it will cause tax ramifications down the road.

Quote:
Originally Posted by Petunia 100 View Post
How would this solve the problem of inadequate income?
How it helps is they would not have a mortgage, provided it is paid off. Kids would be on the hook if something goes wrong though.

The last point in red that has to be done 5 years out and even then care needs to be taken with what was known and when.
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Old 05-04-2015, 04:25 PM
 
71,794 posts, read 71,896,917 times
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the way they change rules medicaid planning can be very risky. first it was 3 years look back , then 5 years .
next thing you know whatever you did ,especially irrevocable trusts may mean nothing if it goes to 6 and you didn't clear the time frame ,

Last edited by mathjak107; 05-04-2015 at 04:39 PM..
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Old 05-04-2015, 05:06 PM
 
8,870 posts, read 5,149,988 times
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Quote:
Originally Posted by golfingduo View Post
Interesting solutions, though as mj says it will cause tax ramifications down the road.



How it helps is they would not have a mortgage, provided it is paid off. Kids would be on the hook if something goes wrong though.

The last point in red that has to be done 5 years out and even then care needs to be taken with what was known and when.
If it is paid off, they already have no mortgage.
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Old 05-04-2015, 05:09 PM
 
Location: San Antonio
7,629 posts, read 14,389,649 times
Reputation: 18712
I personally would never use a reverse mortgage (choosing to sell God forbid the need were to arise) but thank you for helping others with this information should they be considering one....it seems that all the opportunities for those of us with age are being closed/tightened to the point that we will be left with little in the way of options in our golden years. Grateful to be prepared and PRAYING that our IRA's hold out above our pensions to allow us not to burden our children.....
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Old 05-06-2015, 02:00 PM
 
708 posts, read 503,884 times
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Quote:
Originally Posted by Paka View Post
I personally would never use a reverse mortgage (choosing to sell God forbid the need were to arise) but thank you for helping others with this information should they be considering one....it seems that all the opportunities for those of us with age are being closed/tightened to the point that we will be left with little in the way of options in our golden years. Grateful to be prepared and PRAYING that our IRA's hold out above our pensions to allow us not to burden our children.....
I agree with you. I would think it would make much more financial sense to sell the house and move
into something more affordable and use the cash difference for retirement. Mortgage companies are the only one coming out on this deal. They have no risk and charge high fees. I hope these requirements will make people thing twice about reverse mortgages. They sound great but....
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Old 06-19-2015, 12:51 PM
 
4,799 posts, read 11,984,938 times
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Quote:
Originally Posted by Escort Rider View Post
The banks make out like bandits on reverse mortgages. I don't see that changing.
In what way?

Do you realize that very few banks actually do reverse mortgages?
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Old 06-20-2015, 06:32 AM
 
33,046 posts, read 22,092,919 times
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Quote:
Originally Posted by mathjak107 View Post
be careful though , that can be one major tax disaster if the child sells that house after you are gone. it can also create tax issues for the parents if they need to sell and move at some point as they lose all or part of the tax free exclusion.

that cost basis stays with the child as opposed to inheriting that house at current market value. divorce of the child , law suites can also put that house in jeopardy for the parent..

it can create gift tax issues on both federal and state levels too.

And when I die
And when I'm dead dead and gone
There'll be one debt born
To carry on, to carry on
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Old 06-20-2015, 07:08 AM
 
Location: Grove City, Ohio
10,138 posts, read 12,402,575 times
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Quote:
Originally Posted by TuborgP View Post
I found it fascinating that with the new rules some folks will get even less money out.
You weren't under the impression the government was here to help you out and protect you, were you?

Because if you were I got a bridge I want to sell you.

All of us are facing different things going into retirement so nothing fits all, that are always exceptions.

But I think the idea of a RM is one of the worst things to come down the pike more most of us, not all but most.

I look at our home as something we can pass along to the children and it serves as a backup well of money if we need it. What happens if I die at 82 and my wife needs to go into an assisted living facility that runs $4,500/month? She can sell the home and added to the ss she would continue to receive and stay in a good facility for a decent number of years.

In the course of my job I've been in a good number of assisted living facilities and the quality of life offered to residents varies so much it is mind staggering.

One is very nice, nice meals, pleasant surroundings, clean living, really nice meals (I know, I said that twice), with great staff and they even offer free transportation around town to doctor visits and shopping so you don't even have to own a car.

Then, 60 miles away, there is the worst hell hole I ever walked into where food is served out of the can and you are lucky if they clean the poop off the couch once a week. Get this, I am NOT kidding folks! It took everything I had to keep from throwing up and I would rather be dead then be forced to live my days out in that hell hole.

$4,500? I know what you are thinking but in south Georgia that is what you would pay for a nice one that you would pay $6,000 to $8,000 for something equivalent in New York or California.
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