In Home Care Providers need to know
When I go to speak with local In-Home Care Providers, some admitted that a customer ran out of funds too soon frequently. I asked for an appointment to explain the benefits to the Manager, but never received much interest. By the time the family calls me they have a POA or guardianship, and they are out of money. Read at the bottom; if the person is already receiving government assistance, a Reverse Mortgage shouldn’t affect that, but instead give your client a supplement.
From an hourly or daily in-home standpoint, I want to explain what’s in it for you. I am living thru though this currently with my dad I know about the stress on the other wife and I have seen people cut corners or use non-qualified, non-bonded people to save money. Let’s imagine you send out a caregiver every Wednesday for 6 hours, then in 45 days its 12 hours a week. Especially with Alzheimer’s it can take a long time to go from 6 hours a week for 24/7. If you see this starting, you could recommend setting up the Reverse Mortgage then and the money sits in a “growing” line of credit”. Example a 67-year-old with a $300,000 home, would get about$130,000 after closing costs, the line of credit accrues at approximately 5%, in ten years that $130,00 is now $260,000.
Reverse Mortgages in the past were looked at as last resort products and negatively, now they are much safer, financial planners realizing people are living longer received the go ahead from FINRA- their sanctioning body. In the spring the NAELA (National Association of Elder Law Attorneys) on the front cover is stated “Reverse Mortgages or LTCI” (long term care insurance).
What you probably already aware if one half of a married couple applies to go into a Medicaid nursing home, the other spouse is left with the house, one car, and usually not enough to live on. Either way Medicaid will probably own everything. I’m going to tell you a secret that most financial planners and elder law attorneys don’t know: The one staying in the house can have a Reverse Mortgage in place with a credit line, monthly payments for a fixed number of years, or lifetime.
This money can be used to help with the lack of income. I know the best elder law atty I the state and he has went to court and won every time. The reason is because Reverse Mortgage proceeds are not taxable and not income. You are using the equity in your home. Call Scott Underwood for more information.