Reverse Mortgage Gifting

A question we found on a popular retirement forum.

My parents are in their mid-80's and desire to gift some cash from their Reverse Mortgage to each of their children and grandchildren. We hesitate, due to the fact that at their age, they could end up in a nursing home at any time. If they would need Medicaid, I don't want them to be penalized for doing this. Is gifting from a reverse mortgage handled differently than from other countable assets?

The cash available through a Reverse Mortgage is not considered income since it is a loan against the property. Knowing this, gifting the funds from a Reverse Mortgage will not affect any government programs that they qualify for. To avoid any problems, make sure that you stay under the maximum gifting level. Reverse Mortgages also do not have an effect on your social security income as well.

Call 1-888-973-8377 with any Reverse Mortgage related questions.