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REVERSE MORTGAGES and ELDER LAW
Reverse Mortgages involve a very particular class of borrowers. Because they involve the senior borrower, their circumstances can be different and legal issues can be quite different, as well, from other mortgage loan closings.
The existence of estate planning, or lack thereof, as well as Medicaid planning by the borrowers can create unique issues. The assistance of an Elder Law attorney can be extremely useful in these circumstances especially if any changes to the title to the property are contemplated. With forward mortgages, it is sometimes easier to re-title the property in order to resolve some issues. Changing the title to the property could have an affect on any prior estate planning that was done. In addition, such a change could have a serious affect on the borrowers eligibility for Medicaid benefits.
It is always best to have the borrowers consult with their own attorney in these circumstances, as it is likely he or she was originally consulted with regard to the estate or Medicaid planning, and would be most familiar with the borrower’s circumstances. If the borrowers do not have their own attorney, an attorney that concentrates his or her practice in Elder Law issues should be consulted. Here are some things to look for. • Has title to the real property been transferred to the trustees of a living trust created by the borrowers?
• Has title to the real property been transferred to others (usually children) with the borrowers retaining a life estate?
• Are both spouses over the age of 62?
• Are the borrowers currently receiving any Medicaid benefits?
• Are the borrowers contemplating applying for Medicaid benefits in the near future?
• Are either the Husband or Wife currently residing in a skilled nursing facility?
• Is it likely that either spouse may need to enter a skilled nursing facility?
• Have the borrowers executed a Durable Power of Attorney?
If it appears that there was a specific reason for transferring the title to the property as it currently stands, then an attorney that deals with Elder Law issues should be consulted. Every reverse mortgage professional should have a good Elder Law attorney that they can consult with from time to time as these kinds of issues arise. No warranty or guaranty is made by CLS for the accuracy or reliability of the information provided within this web site or any sites to which it links. The information contained herein is not and should not be construed as legal advice, and CLS assumes no liability for any reliance on the information contained herein. Only an attorney licensed to practice in the appropriate jurisdiction can provide legal advice. |