My mother in law is divorced and retired but barely makes enough money to live on. She worked in a government job with a pension but decided to quit after 10 years for some reason and now barely makes any money off her pension and social security. Additionally, her health is not great and she doesn't take care of herself, she has been declining, and I know she will eventually need a caregiver, probably soon. My family does not have the money for this. However, my mother in law lives in a paid off house in Southern California that is probably about $800k in value. This house is all her money.
Her poor financial decisions frankly terrify me for my family's financial future. I am the sole provider for a family of 5, and the only one who makes a steady decent income, out of my husband, my mother in law, and my husband's sibling. I got free legal services for my mother in law(my dad's best friend is a lawyer) who put the house in her name. My Father in law was still on the house, she never took his name off, per the divorce agreement. The lawyer also set up a trust, my husband is the executor of the trust so he can sell the house to pay for any caregiving.
Well, now her and my husband are looking into taking out a reverse mortgage on the house to pay for living expenses. This concerns me because 1) as I said we don't have any money to pay for any caregiving expenses for her EXCEPT her house, and 2) she doesn't take care of herself financially or healthwise so I think in the back of her mind she was always thinking we will.
I have told my husband I don't feel like the reverse mortgage is a good idea. I just know that somehow this is going to become our problem financially if my mother in law needs care because I am the only one with a steady income between my husband and mother in law, and my husband's siblings. He is insisting I just don't understand reverse mortgages and it will not be for the full value of the house.
What are everyone's thoughts on taking out reverse mortgages if you eventually need the money in a house?
Submitted March 08, 2023 at 06:00AM by fox__in_socks https://ift.tt/75OuaXz
