Parents' house is deeded to me with life estate for both of them. Mom has recently passed and Dad is in Nursing Home on Medicaid with Alzheimers. He has been there 4 years. I need advice on whether I can access the reverse mortgage to pay property taxes and maintenance expenses on their home since I am barred from selling it. I am Agent under Power of Attorney for Dad. Can I withdraw funds?
Real Estate Attorney
You probably can not withdraw any funds from the house on a reverse mortgage. First, you would have the same problem getting a reverse mortgage as with any other mortgage in that most lenders will not lend on a house with a life estate. You would also have to be over 62 years of age to qualify for a reverse mortgage. Best thing to do would be to have your father sign a new deed removing him from the life estate. If he is unable to do that then i suggest you consult with a real esate lawyer as the power of attorney may give you the power to remove him from the deed.
This e-mail may contain confidential or privileged information. If you are not the intended recipient, please notify the sender immediately by return e-mail and delete this e-mail and all copies and attachments. If you are not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. IRS Circular 230 Notice: Unless specifically stated otherwise, any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Unless specifically stated otherwise, this communication shall not be deemed to be legal or tax advice, and no attorney-client relationship shall be deemed to have been created.
Contracts / Agreements Lawyer
You would be well-served to discuss your dilemma with a New York real estate attorney in a confidential forum as soon as possible.
The interest you own here is a contingent one. As of present, you only have a future interest. Ignoring the age requirements on a reverse mortgage, you will simply have problems withdrawing equity from something you do not currently have possessory or present interest in.