Can the proceeds be used as a retirement or estate planning tool to purchase annuities, life insurance, prepaid health insurance, etc. or any combination thereof?
• Yes. The use of the proceeds is at the discretion of the borrower. The use of the proceeds of the Reverse Mortgage is only limited to the creativity and needs of the borrower. General Comments. • The Reverse Mortgage may be used to provide funding for healthcare or medical treatment. • It may reduce the impact of estate taxes through the purchase of various other insurance products. • It may maximize the legacy of estate transfer. • It may lower the total estate value subject to taxes. • It may create estate deductions thereby enhancing the net value of the estate. • It could provide an added element of control to the estate plan. • The proceeds of the Reverse Mortgage are tax free. (Consult your financial advisor or tax attorney).
