How will a reverse mortgage affect my childrens inheritance?

I often hear clients express the fact that they want to leave as much as they can to their children and if they have a lien on the property that their children will get as much of an inheritance.

Lets look at this:

First of all, I have talked to many children and if you ask them how they feel about what they want to inherit from their parents, money is not the first thing that comes to mind. Usually they want your wisdom, love, work ethic, experience .. all those intangible things that you have tried over all their living years to pass on to them.

Your kids would rather have you enjoy the fruits of your labor and see you happy then have a little extra money when you die. As parents we sometimes feel an obligation to leave our kids as much as we can – while that is admirable- it isn’t necessary. Most of our kids are better off than we are. Most inheritances, no matter how large or small, are gone in the average of 8 months – is that the best use of your money?

What if I absolutely do not need the money?

Lets talk about the Time Value of Money. Is a $100 dollar bill worth today as much as it was 10 years ago? How about 40 years ago? A $100 dollars is a $100 dollars right? Sure but what it can purchase is quite different and as time goes on it will have less and less purchasing power. This brings us to the question “Should I distribute my money to my children or wait 20 years and pass it on after I die?”
Well of course the money you give them now is going to have more purchasing power than if you give it to them when you die. Maybe they could use it now to help them get their first house, invest in a new business, finish school or maybe start a retirement account now. One of the best advantages of giving it to them when you are alive is that you can help them make wise decisions with the money you are giving them. They don’t have your experience and they can learn from your mistakes and good choices!


Do your children want your house? Maybe, but usually not. How many of you believe your kids will pack up and move in your house once you die? Most children already have their house and it is usually nicer than the parents. What the kids want is not the house, but the cash it represents.

If your primary goal is still leaving as much money to your kids as possible, as harsh as it is, you need to find a way to die soon. Every day you live, you are spending some of your children’s inheritance.

Your children would rather have you around than a few extra dollars after you die, so stay healthy, spend time with your kids and grandchildren, take them on an unforgetable vacation – memories last a lifetime and money will soon be lost and forgotten.

Sincerely,

Reverse Mortgage Man
http://www.moneywise123.com/
(866) 800-0280