HECM & YOUR HEIRS
Protect What You Leave Behind
A HECM is a non-recourse loan — your heirs will never owe more than the home is worth, and many homes still build equity over time.
THE FACTS
What Happens to Your Home When You Pass Away?
There are many misconceptions about HECM reverse mortgages and their impact on children’s inheritances.
How a HECM Protects Your Heirs:
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If the house appreciates just 4% annually, equity will actually increase in most cases
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If not using equity to pay for living expenses, then another asset will be depleted
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If negative equity, only 95% of homevalue needs to be repaid
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Accrued interest may be tax-deductiblefor heirs when paid off (Consult with CPA)
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Nearly one-third of midlife adults with at least one living parent (32%) are providing financial support to them
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Over half of midlife adults(54%) provide $1,000+ for monthly expenses such as food, housing, and medical care
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More than a quarter (28%) of those who provide financial support to their parents consider it a high financial strain on their own family
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Nearly half (47%) are concerned about being able to provide financial support to their parents in the future
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According to a 2020 AARP Study:
With inflation making it even harder to make ends meet, it's no surprise that nearly 1/3 of adult children now help support their aging parents financially—while both generations worry about future costs like at-home care or a nursing facility. This strain affects the whole family and often raises a new concern: how it will affect their inheritance.
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