Children wanting info for parents about a Reverse Mortgage?
Burdens in taking care of the elderly parents are increasing for children. If a parents is examining the possibility of taking out a reverse mortgage (or even if the idea is yours), here are some steps that may help. All children and close family members should be involved in the discussion.
1. Start a basic review of your parents’ finances.
2. What kind of income do they have (social security, pension, etc.).
3. What are their basic expenses (cost of living)?
4. What are their current resources and or liabilities?
5. Try to understand their hopes and expectations.
6. How do they desire to live affluently or comfortably?
7. Any consideration of big purchases?
8. Any desire for a lot of traveling?
9. Do they desire a move to an independent or assisted living facility?
10 Do they prefer to remain completely independent for as long as possible?
It is important to note that children should first to try to understand their expectations, and then after taking account of their financial situation, to administer them the best they can if they can. If children see a big gap between their outlook and economic reality for parents then patience in managing expectations in a gentle manner is often a great resource. Remember they are your parents!
While it is understandable that children feel guilty about loaning money to parents or sometimes not having enough money to help, most children just want parents or even grand-parents to be happy. A big concern is will they always be in a position to be able to loan money for the long term, especially with college education looming for some parents if they do support them directly. We often all underestimate the desire for control. Ask any two year old.
A reverse mortgage may make a lot of sense and we encourage children to sit in on the education to see if it makes sense for their perants.
