| Ellen
lost some money in the market. She wasn't panicking
when we saw her. She was fortunate in that she had
substantial assets. Yet she wanted to accomplish
her financial plan without touching those assets.
She accomplished a lot with her jumbo reverse mortgage.
She gave money to her adult children, created a
college fund (529 plan) for her three grandchildren
and made plans to take a few vacations she has continuously
put off. |
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| Jack
and Jackie secure a reverse mortgage for $130,000
and hand it to Gilmore to set up the college fund.
No payment will be due on the mortgage, so there
is no reduction in current cash flow to the grandparents.
The children receive a gift, free of estate and
gift tax, by the transfer of money over several
years. The grandparents enjoy the experience of
paying for their grandchildren to go to college,
and Gilmore enjoys the opportunity to sit down with
the parents to discuss how they can use the $200
per month, per child they were paying for other
planning needs. |
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