On October 1st, Tesla revealed a model of its Tesla humanoid robot, Optimus. Some viewers think it might have retail potential, as a robotic home assistant. Tesla seems serious about the project. The company even sidelined the creation of an affordable ($25K) electric car to focus its expertise on robot technology. But Optimus is still years away from viability, and the predicted cost of the Tesla robot is about $20K.
For that much, some senior homeowners could pay off their remaining mortgage debt. In any case, they could certainly buy quite a few of the tech options discussed below. These items focus on assisting with tasks and chores, safety and security, and all-around ease for homeowners “getting up there” in years.
Retirees and seniors are active in the U.S. real estate market — and everything else! Turning 65 once meant retiring on a pension. Today, for many, it means financial independence, self-actualization, and enjoying life for a few more decades.
How does this impact an older adult’s real estate plans? Is it better to rent or buy? And if buying is better, what type of home makes sense?
The closer we get to retirement age, the more we start thinking about how to avoid pulling from our retirement accounts too early or too much. For many homeowners, home equity is starting to look like a key retirement planning resource.
What’s the best way to tap into it? Selling for a profit and downsizing is one way. But when home prices are high, it’s not easy to buy another home.
In a reverse mortgage, the lender releases monthly payments to the homeowner. This can keep owners in their homes, free up spending money, and preserve retirement accounts. The homeowner is borrowing the money with the property value as collateral. This means receiving a sum of money or a fixed monthly payment. The full payoff is due at the time of the borrower’s death or at the time the house is sold. As the homeowner doesn’t pay it back monthly, what happens is the home’s value is coming out to the owner in cash that the owner’s estate will address after death. At that time, the beneficiaries will refinance or sell the home to pay off the reverse mortgage.
The baby boomers are now driving a booming business. Retirement real estate is a big part of what marketers are calling the longevity economy.
Sure, many seniors just want to live where they already are. But not everyone wants to (or can safely) age in place at their long-time homes. That’s especially true when the homes have multiple stories, or when they happen to lack easy access to shopping, entertainment, or opportunities to socialize.
Many seniors are curious about modern senior living concepts, planned to suit a generation’s current interests and needs. Some have tried out retirement for a while, and have come to crave a place with people to meet, things to learn, and activities to enjoy. Developments focused on senior living can offer them healthful surroundings, on-site amenities, and a community of peers.
When seeking out such a community, a threshold question is whether to rent or buy — or to find some kind of hybrid of the two. Here, we take a brief look at the options in retirement living.
Thinking of putting your child’s name on your house deed? If that’s the person who will get the home after you pass in any case, it might seem sensible. And maybe it is, in certain circumstances. After all, probate can be time-consuming, and even contentious.
But before making this decision, do you know that your child is ready and willing to own a house? And at that point, have you consulted with an attorney and tax specialist about doing things this way? Here are some key issues to spot before obtaining professional guidance.
Maine will cover property taxes for homeowners aged 65+ who
have annual incomes under 40K. Thousands of homeowners — most of Maine’s
residents who receive Social Security benefits — will be eligible for the
benefit. The provision, LD 1638, takes effect on Oct. 18, 2021. There is a
catch for these eligible owners, though.
You might be wondering about that house or condo you’ve left
in your will. Often, after a homeowner passes on, the real property is sold
from the estate to pay off debts. But maybe you have a relative who would like
to have and keep your home.
For the sake of exploring the question, say you still owe a $50,000
mortgage balance when you pass on. Of course, you could leave your beneficiary
enough money to pay your loan off, if you are financially able to do so. Or you
could pay it off early yourself.
But if you need to pass the home on with a mortgage, can
your beneficiary just keep your house or condo, and pick up the monthly mortgage
payments where you left off? At least the next owner would have a head start —
inheriting your home equity, and just paying what’s left on the balance.
A home can go into an irrevocable trust. But giving
up control over a primary residence is not something most owners want to do.
The owner lets go of the “incidents of ownership” and the house goes under a separate
tax ID, with taxes filed by a trustee. The owner might continue living in the
home, but the house essentially becomes a vessel to hold property for the named
Any homeowner’s financial circumstances and goals can change,
and so can their relationships with potential beneficiaries: family, friends,
and charities. This is why an irrevocable trust makes sense only in rare
revocable (living) trust, you can assume the role of trustee, and stay in
control of your real estate during your lifetime.
After you pass away, your living trust becomes a substitute
for probate. This is especially helpful if your estate would otherwise face multiple
probate processes because you have real estate in several locations. It is also
a helpful way to pass a home along to children when they become old enough to
receive it, as the trust can direct a title change to a child at a specified
If you need to modify your estate plan due to children
growing up, a marriage or divorce, or other significant changes in the makeup
of your household, or because of your age or physical needs, you may. You can take
the asset out of the trust, assign a new trustee, change your beneficiaries, or
modify other terms of your trust.
For many homeowners, this is the best of both worlds in
estate planning. You keep full control during your life, but seamlessly transfer
the home on when you pass on, avoiding the time, expense, and stress of
probate. Still, there are plenty of things to know before making this decision,
as we’ll observe in this article.
homeowner should die intestate. In plain English: Every homeowner needs a will.
By now, everyone knows life is fragile. Nobody has forever and
a day to put an estate plan down in writing.
And if you do leave things hanging, and you do pass away without
a will, or without some combination of a will and other instruments to convey
property, you’ll leave assets to be distributed under the state’s intestacy
laws. States try to send everything to your closest relatives, and if you’re single
without children, the state will contact siblings and so on, and pass your
property to them. That might be OK with you. But if you’re like most homeowners,
you’d prefer to decide for yourself.
If you’re a parent, it’ll be hard for your family to agree
on what to do without your written guidance. You also need a will to bequeath
assets to non-family members or nonprofits. You need a will, too, to explain
why you are not giving your home to a close family member if you choose not to.
Otherwise, you might be setting up a will contest after you pass.
When a person’s wishes are logically thought out and
expressed through a will, though, messy scenarios are far less likely to unfold.