Legal Question in Wills and Trusts in Louisiana
Reverse Mortgage and Inheritance
To improve my parent's fixed income, I would like to establish a reverse mortgage on their personal residence providing them with additional monthly income. Upon their death, would my reverse mortgage lien be protected from other creditors owed by the estate? Specifically if a parent were to go into a nursing home and it placed a lien against the estate for fees in excess of insured coverage, would that lien take precedence over the reverse mortgage lien held by the heir on the primary residence?
1 Answer from Attorneys
Re: Reverse Mortgage and Inheritance
You and your parents need to talk to separate attorneys. If the reverse mortage is not for fair market value and the sale occurs within 3 years of their need for a nursing home, they can be penalized on their Medicaid assistance. Your interest will be protected by the instruments you file in the land records.
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