Assisted Living and selling mother's reverse mortgage home

What is the name of your state (only U.S. law)? California

We are planning on moving my mother to assisted living. Her current home is on a reverse mortgage with a balance of approximately 125,000.00 and the house's current worth about 195,000.00. Can my sister and I buy out the existing mortgage, rent the home, and use that income to help pay for the assisted living? What are the tax consequenses of buying the home at lower than market value? The home is in a family trust with all three of us.

When your mother is no longer living there, the reverse mortgage is due.

It's unlikely the entity holding the reverse mortgage will sell it for less than FMV. Further, if you don't do this properly, it can screw her medicaid eligibility for the assisted living.

You need to get a elder law lawyer involved to make sure you don't make a drastic mistake.