Are you a senior residing in Macomb, Oakland, Wayne, Ottawa or Kent County and need assistance with long-term care planning, elder law or veteran’s benefits to provide in home care, assisted living, or, nursing home care for yourself or for a loved one?
In my last entry we discussed the use of qualified or retirement assets to: (1) provide an additional “private” benefit to supplement monthly income; and, (2) to protect other non-qualified assets from “spend down” and estate recovery. In this entry we will explore the use of a home’s equity to provide care by supplementing monthly income.
A home with equity can also be used a s a “private benefit” for a senior that is not a veteran and needs assistance to cover the cost of his or her care. Using the equity to create a flow of income like or in place of a monthly VA benefit can create a solution to a long-term care problem.
Through the use of a home equity line of credit or a reverse mortgage, a sum of money can become available to fund an immediate annuity to create an income stream to provide care. In today’s real estate market, a home that cannot be sold or that is undervalued might be better used as a monthly income to provide for care at home. Seniors often fear tapping the equity of a home to provide for their own care. Often times they believe the family wants the home after they are gone or that the bank will foreclose on a home before they pass. This is not the case; if planning is done correctly. Reverse mortgages will allow an individual to continue to reside in home, and, if the outstanding drawn balance is “cured”, in most cases, within eighteen (18) months after the death of the owner than the home remains or reverts to the estate or trust. Or, the home can simply be surrendered to the bank following death if the family does not want the home. Thus, viable options to pay for long-term care can be created through the use of untapped equity in a home.
Sounds complicated? If so, please call. We can help.
Call first… Act second.
The attorneys at Serafini, Michalowski, Derkacz and Associates, P.C. are ready to help. Serving southeast Michigan and metro-Detroit in Macomb, Oakland and Wayne County, through its Sterling Heights office; and, west Michigan in Kent and Ottawa County through its Zeeland office.
Free consultation, by appointment only, (586) 264-3756, (616) 931-3670, or, 1 (866) 529-ELDR.