For most people, their home is their biggest asset. When planning how to pay for long-term care, seniors who have significant equity in their home but few other assets may want to consider a reverse mortgage. A reverse mortgage can make it possible for seniors to tap into some of the equity in their home as part of a comprehensive strategy.
Seniors must be careful. Some predatory lenders and scam artists have taken advantage of seniors by selling them high-cost loans, or convincing seniors to invest loan proceeds to in bad investments or other products. The Minnesota Secretary of State publishes a good brochure that outlines some of the pros and cons of reverse mortgages. You can read or obtain or request a copy by visiting The Minnesota Secretary of State website.
Reverse mortgages are complicated financial products with significant – and possibly bad – consequences. But for some, a reverse mortgage from a reputable lender might play an important role in their plan for paying for long-term care expenses. We strongly recommend that you contact our office for a review of your particular situation before applying for a reverse mortgage. It might not be the right planning tool for you. Timing of the reverse mortgage, and how and when the proceeds are used, can affect eligibility for Medical Assistance or other public benefit programs.
Hennessey Law Office PLLC assists clients with estate planning (including wills, trusts, powers of attorney, and health care declarations) and elder law matters (including long-term care planning and Medical Assistance applications). We primarily serve clients in the greater Twin Cities metropolitan area, including Apple Valley, Burnsville, Bloomington, Eden Prairie, Edina, Minneapolis, Prior Lake, Richfield, St. Louis Park, St. Paul, Savage, Shakopee and other communities in Hennepin County, Ramsey County, Scott County and Dakota County.