Reverse Mortgages – Are They a Good Choice for Seniors?

Elder Law

If you’re considering a reverse mortgage (also known as a Home Equity Conversion Mortgage) as a means to supplement your retirement plan, it’s important to know the pros and cons. Here are some insights from your elder law attorney in New Jersey.

The Pros

  • You don’t have to make any payments on these loans until you die or move.
  • Your credit record is not a big concern, as the key factors are the value of the home, the loan amount and your age as the borrower.
  • If the value of the property drops, your heirs won’t owe more than the value of the home when it is sold. If the value goes up, your heirs may inherit some money from the sale of the home after the debt is paid.
  • You can shop around as there are many different reverse mortgage products on the market, so you can get good rates with a bit of research and guidance.
  • It’s a good source of tax-free income if your money is tied up in your property and you don’t have a lot of cash flow from retirement funds or investments.

The Cons

  • Unlike a traditional mortgage, the amount you borrow will increase over time.
  • Your heirs will not inherit your property, but will inherit the debt of the loan, which would be paid off by selling the house. This will considerably reduce their inheritance.
  • There is no annual tax deduction of the interest.
  • You cannot leave your home for one year. If you leave after a year, the loan must be paid in full.
  • You have to be 62 years old or older.
  • The interest is still fairly high, and if you have good credit, good cash flow from other investments or other assets outside your home, there are better options like home equity loans or a second mortgage.

Make an Informed Choice and Protect Your Assets – Speak to Your Elder Law Attorney in NJ

If you would like to help your loved one get the legal assistance they need to protect their assets and wellbeing, speak to elder law attorney Frank R. Campisano today. Experienced in elder law and estate planning, he is compassionate and committed to his clients, ensuring that you’ll receive the highest quality legal expertise and guidance. In addition to sound elder law advice on preventing elder abuse, Medicaid assistance and Medicaid planning, you can also prepare additional estate planning documents, such as a Last Will and Testament, Power of Attorney documents, medical directives and trusts. For a free consultation, please contact us today or visit the website at

Estate Planning – More Than Minimizing Tax Exposure

While it’s true that a lot of the focus of estate planning is one the considerable benefits it has on reducing the taxation on your estate and assets, this isn’t the sole point of having an estate plan. Tax planning is just one part of estate planning, it’s about having answers to important questions and having control of your assets in the event of your death. Here are some insights into why this is so important, from your estate planning attorney in New Jersey.

Asked Yourself These Questions? You Need Estate Planning in NJ

It’s normal to ask yourself questions about the future relating to yourself and your loved ones, including:

  • What do I really own?
  • How can I make the most of the assets I own?
  • Who will get these assets if/when I die?
  • What happens if I get disabled?
  • How will I pay for my and/or my spouses’ retirement needs or long-term care as a senior?
  • How can I take the best possible care of my loved ones even if I die?

These are really the fundamental concerns that most of us have – and estate planning will give you these answers. It’s not about how much you own or whether or not you have kids – it’s about peace of mind for yourself. Estate planning even looks at who you’d like to have control of your health and financial decisions if something happens and you can’t do it for yourself, whether it’s due to a traumatic accident, illness or old age – so your wellbeing is a priority too.

The tax measures that come into play are simply there to ensure that you get the most tax breaks that you are qualified for – and that the highest percentage of your assets goes to your loved ones to care for them in the event of your death.

Estate Planning is for Everyone – Start Tay and Meet with Your Estate Planning Attorney in New Jersey

At Sedita, Campisano and Campisano in New Jersey, estate planning attorney Frank Campisano is ready to assist you with all your estate planning needs – whether you need to make a business succession plan, Last Will and Testament, Power of Attorney, a Living trust or to minimize inheritance tax on your estate.

Contact us today and let us deliver expert estate planning advice to take care of all your wishes – whether your business is big or small. For more information, please visit our website at

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