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Should I have a trust if I have a reverse mortgage?

I just discussed the issue of reverse mortgages with a client. She has a $425K home with a $325K RM and assumed she did not need a trust. 

I explained that for her heirs to receive the equity in her home after she passed away the house would have to be sold within 6 months to pay off the RM.

If the house is in trust this could be done quickly by the trustee. If no trust then off to probate court to secure a court order to permit the sale.  Since probate can take a minimum of 6 months, the reverse mortgage company will be forced to start foreclosure proceedings before that time.  I faced this footrace several times with heirs and the reverse mortgage companies can ring up some hefty pre-foreclosures fees that will come right out of the equity in the home.

Bottom line was probate would cost her estate $13,100 -- $11,500 in lawyers fees and $1,600 in costs.

She choose to do a trust and saved her heirs this unnecessary expense and delays of the probate process.
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