Let’s look at what happens when your children inherit your home?

• The first thing that will happen is that they will have to maintain a new insurance policy as a second home (which is considerably more than a primary residence). Next, they will start paying property taxes on the current value of your home and not be a protected homesteaded property unless they occupy it as a primary residence. In many cases it could triple what you are currently paying. They will also have to take over the expense of maintaining the property inside and out.
• Regardless of whether the above considerations are important, the most likely scenario is that they will probably sell your home and put the money in the bank or add it to their retirement funds.
• If your children or grandchildren need a free home to stay in and they can afford to maintain it, then you probably should leave it to them.

Let’s take a look as to whether a reverse mortgage may be right for you

• You have a first mortgage and would like to pay it off.
• You have children, or a family that really could use financial help now. A reverse mortgage may give you the money you need to help.
• You’re living ok on the income you receive but never have enough to enjoy yourself.
• You live from a social security check and have a lot of other debt that you can’t afford.
• You’re rich and don’t care if your kids sell your home.
• If none of the above apply to you and you’re pretty well off but wouldn’t mind a big chunk of cash for renovations or some new toys or travel. You believe that you took care of your kids for a long time so you’re going to enjoy your retirement to the fullest! and they can have whatever you don’t spend ????

Next article will be about renting vs selling when you inherit a home.