Michigan - My parents have 2 goals for a lakefront property they own free and clear:
1) Get a reverse mortgage due to retirement funds running out.
2) Change property ownership or set up family trust to make sure if they got real sick and had to go into a nursing home, no one can go after the house for lack of funds to pay for treatment.
The property is currently in their name only(not in a trust yet) I am wondering how they can achieve both of these goals without one interfering with the other. ie, can they get a reverse mortgage on the property if it were held in a family trust or put into one or more of the children's names? or #2, can they put it in a trust or transfer ownership once they get a reverse mortgage on the house (without paying off the reverse mortgage)
They want to keep the home in the family and not sell it. The children will take over whatever balance is in the reverse mortgage when they pass on.
PS - I am posting another thread with more specifics on how the children will take over the house when they pass.
1) Get a reverse mortgage due to retirement funds running out.
2) Change property ownership or set up family trust to make sure if they got real sick and had to go into a nursing home, no one can go after the house for lack of funds to pay for treatment.
The property is currently in their name only(not in a trust yet) I am wondering how they can achieve both of these goals without one interfering with the other. ie, can they get a reverse mortgage on the property if it were held in a family trust or put into one or more of the children's names? or #2, can they put it in a trust or transfer ownership once they get a reverse mortgage on the house (without paying off the reverse mortgage)
They want to keep the home in the family and not sell it. The children will take over whatever balance is in the reverse mortgage when they pass on.
PS - I am posting another thread with more specifics on how the children will take over the house when they pass.