Reverse Mortgage Question

Q: I am a widow, 81, whose primary asset is my home. I have two adult children to whom I would like to leave this home, but I am concerned I might outlive my assets.

Also, my house will soon need repairs, which I am not sure how to pay for. My two children suggest I deed my house to them now and they will pay for the maintenance, taxes and insurance. Do you think this is a good idea?

A: No. If you quitclaim your house to your adult children now, that could prove detrimental to both you and them.

For example, suppose you later decide it's time for you to move to an assisted-living center. If you already gave away your home, where will you find the money to pay for your care?

Also, if you gift your home to your two adult children now, they will take over your presumably low market value adjusted-cost basis. They would be better off inheriting the house after you pass on, thus receiving a new ''stepped-up basis'' of market value on the date of your death.

If you are in reasonably good health, and expect to stay in your home at least five years, look into a senior citizen homeowner reverse mortgage. You can choose from a lump sum to pay for repairs, monthly lifetime income, a credit line (except in Texas), or any combination. To find reputable local reverse mortgage originators, visit www.reversemortgage.org.