Tag: Family Law

No crystal ball

by middleburgreverselady, posted in Caring for Aging Parents; A Daughter's Story, FHA HECM, Financial Planning, Laurie MacNaughton, Laurie McNaughton, Retirement Planning, Reverse Mortgage
Laurie MacNaughton © 2018

“My mother’s home was paid off, and at the time we thought a home equity line was going to be the best way for her to pay medical bills. But at this point the payment is crushing her – and she has new medical bills coming in. Looking back, what we really needed was a crystal ball.”

Truth is, a crystal ball would come in handy in much of life. It’s just that more is at stake when we’re dealing with our aging parents.

No honest lender is ever going to tell you a reverse mortgage is a universally good fit: there are older homeowners for whom the time has come to sell their home and transition into other housing. Some are better served by doing a traditional home equity line of credit (also called a “forward” line of credit). And there are those who benefit from drawing down monies under management.

But for homeowners who wish to stay at home and need to leave managed retirement accounts untouched as long as possible, or for those with Medicaid considerations, a reverse mortgage may be the perfect fit.

If you would like more information on how a reverse mortgage might help you or your loved one with retirement plans, give me a call. I always love hearing from you.

 

 

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Silver Divorce – How Reverse Mortgage Can Make a Way Forward

by middleburgreverselady, posted in Caring for Aging Parents; A Daughter's Story, Divorce, FHA HECM, Financial Planning, Laurie MacNaughton, Laurie McNaughton, Retirement Planning, Reverse Mortgage

Silver Separation and the Forty-Year Itch

by middleburgreverselady, posted in Caring for Aging Parents; A Daughter's Story, FHA HECM, Retirement Planning, Reverse Mortgage

They call it Silver Separation, or the Forty-Year Itch, and it’s one of the nation’s fastest-growing trends: divorce among couples aged 60 and older. In fact, though divorce rates nationally have dropped over the past decade, among older baby boomers divorce rates have risen more than 50%, according to a 2012 study published in the academic journal Gerontologist.

Experts cite many reasons for this trend, including longevity, greater financial independence among women, and less social stigma toward the divorced.

A study conducted by Bowling Green State University states, “Lengthening life expectancies decrease the likelihood that marriages will end through death and increase the length of exposure to the risk of divorce.”

For many, retirement becomes the watershed moment: kids are grown and gone, career battles fought, most major life-choices made.

“It’s a time some boomers look around and ask, ‘Is this how I want to spend the next 30 years?'” says Beth Von Keller, an elder law attorney in Manassas, Virginia. “In some cases a spouse decides the answer is “no.'”

However, later-life divorce can create vulnerabilities. “When older couples divorce, there is less time to recover financially,” Von Keller states. “Also, historically husbands and wives played a major role in spousal caregiving, and couples relied upon each other for emotional support. That falls away when older couples divorce.”

No one plans to divorce, but no life unfolds according to plan. And no amount of planning can insulate one from the unexpected. However, a solid “Plan B” can determine how successfully one navigates a new reality.

Reverse mortgage can play an important role in later-life divorce, providing funds for property settlements where one party wishes to remain in the home. It can also be an important means of income stream replacement.

If you need – or someone you know needs – to assess options, give me a call. I always love hearing from you.

Laurie

Laurie MacNaughton [NMLS# 506562] ∙ Reverse Mortgage Consultant ∙ Middleburg Mortgage, a Division of Middleburg Bank ∙ 20937 Ashburn Road ∙ Ashburn, VA 20147 ∙ 703-477-1183 Direct ∙ LMacNaughton@MiddleburgBank.com ∙ www.MiddleburgReverse.com