Use A Reverse Mortgage To Give

Studies have shown that giving to someone else is more rewarding than spending it on ourselves, and there has been a wide variety of research showing that giving increases our health benefits.[1]  And the fact of the matter is that it does not matter how much you give or who you give it to. It could be a handful of change to a beggar in the street, or 10% tithe to your church.  It could be a $5000 check to your favorite charity. Or it could be helping a family member out.

Boomers and Seniors Are Giving

Boomers are expected to contribute $8 trillion to charities over the next 20 years.[1]

Boomers are expected to donate 58 billion volunteer hours. [2]

80 percent of giving in this country comes from individuals and families. 36[2]

Before I go any further, it is very important to understand that if the reverse mortgage is all you have left to get you through the rest of your retirement, you need to be very careful with giving. Neither the lender nor anyone else can tell you what to do with the funds you receive from your reverse mortgage. However, they would encourage you to plan wisely.

Giving to Charities / Church

There are a couple of ways you could give to a charity or church. If you do not have any heirs or family that you would like to inherit your home, you may want to consider leaving it to a charity or your church.

Helping Family

There are a variety of ways you can help family with a reverse mortgage. You could help them with a down payment, or potentially pay cash for a home. You could help pay for some or all of your grandchildren’s college, help family through a rough period in their life or any number of situations.

Regardless of your situation, I highly recommend working with professional advisors to determine how much, if any, of your mortgage proceeds you can comfortably and safely give to your charity, church or family without it impacting you financially in a negative way.

As far as giving to family, it is important to know that what you give now from reverse mortgage proceeds could affect the inheritance of other heirs. When giving an early inheritance, you may want to consider working with an attorney to update your will or trust.