Heirs, Protect the Seniors in Your Life From Deed Theft

A 91-year-old Floridian recently sent a payment to his insurer. Then the agent called to say the company wouldn’t be able to renew the homeowner’s policy. The deed had been transferred. The home was now legally owned by another person.

Some days later, from his bedroom, this shocked and disoriented senior heard three people come into the home. It seems the perpetrator was trying to sell the house. Fort Lauderdale police are investigating.

The swindled senior paid off the mortgage 15 years ago. Maybe that’s part of the issue. If there were a mortgage lien on the home, the mortgage company would have been alerted to the transfer. Plenty of elders live in homes with paid-off mortgages in Florida, and plenty of fraudulent schemes are targeting their increasingly valuable homes.

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Living at Home as an Older Adult? Caring for Someone Older? Home Tech Can Help

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.

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What Today’s Senior Home Buyers Should Know

“What Are My Options?”

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?

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Tap Into Your Property’s Value Without Selling Your Home

Options at Retirement Age and Earlier

Retirement and your real estate's value

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.

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Buying Versus Renting for Active Adults

A couple sitting on a bench overlooking a lake and small mountains.

Navigating the Longevity Economy

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.

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Should Your Child’s Name Be on Your House Deed?

Two people enjoying fresh iced tea in an outdoor setting. Captioned: Should Your Child's Name Be On Your House Deed?

Compare the Alternatives

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.

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Hold On, Maine Seniors. Property Tax Relief Is Coming

Image of a lighthouse on a large body of water in Maine.

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.

Here’s the story.

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After You’re Gone, Does Your Mortgage Live On?

Image of two people reviewing a mortgage and discussing end of life plans.

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.

Let’s look at how this plan could play out.

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Should a House Be in an Irrevocable Trust?

Image of a side of a house from the ground looking up. Captioned: Should a House Be in an Irrevocable Trust?

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 beneficiaries.

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 situations.

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Is It Time to Place Your Home in a Living Trust?

With a revocable (living) trust, you can assume the role of trustee, and stay in control of your real estate during your lifetime.

Image of a person sitting on a bench in a wooded area with two children. Captioned: Is It Time to Place Your Home in a Living Trust?

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 age.

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.

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