Jim, My Parents Are Considering Taking Out A Reverse Mortgage. My Siblings and I Are Concerned About How This Might Affect Their Estate And Our Future Inheritance. Should We Go Along With This?
I have to tell you right out of the box, that I am concerned with the premise of your question. The notion that your adults parents need your permission to enter into this transaction is very troubling to me.
I have recently addressed the issue of reverse mortgages, and to the surprise of many readers I think they are a good option for people in certain situations. The fees are high, but for those retirees that need to be free from a mortgage payment and increase their income, these programs have much to offer.
Let me suggest that you set aside the concerns you have for your inheritance and focus on what is best for your parents. If they are in need of monthly income, this may be a very good solution. Will this mean a lesser inheritance to you? Probably so, but I consider inheritances as a gift not an entitlement.
I think it would be in everyone’s best interest to have a financial planner review their entire financial picture prior to them moving forward with the reverse mortgage. There may be better options, but I certainly would not rule out that this may be a very good direction for your parents.
Reverse mortgages are going to become more and more popular as the average age in America increases. While many of my fellow financial writers seem to be against the concept, I continue to see this as a reasonable choice for many.
Agree or disagree, click on comments below.
Helping you make the most of God’s money!