I was talking to a friend today and somehow we got onto the conversation about getting out of life the easy way. I mentioned that there was no way that either of us could die in a parachuting accident if we never even signed up to skydive.
So much is unpredictable and outside of our control. May y’all be blessed in every way possible. Here’s hoping that in whatever way you can, you grab life by the ripcord for as long as you’re able.
It’s important to know that when you lose a friend or family member and inherit a home with a reverse mortgage, that you have a limited amount of time in which to do one of three things to resolve the debt and retain the equity in the property.
What you can’t do is assume the reverse mortgage, and keep it in place under your name, so some action is needed or a foreclosure action will commence.
Reverse mortgages need to be resolved within six months from the date of death. There may be 3
3-month extensions available. If you were thinking that you just won’t report the death to the mortgage company until you have figured out what to do, please know that has already been reported.
By law, funeral homes must report a death to Social Security , and Social Security puts that into a database which is accessible by lienholders. That means that the clock is ticking.
While the clock is ticking, you are generally paying property taxes, insurance, utilities, and accruing interest which reduces equity. Doing a quick calculation will help you in timing that decision on the disposition of the home.
Please call for any help that you may need in resolving a reverse mortgage, whether you are keeping the property or selling it along.
Some people can tell their grown children anything. That’s their relationship and their comfort level around life and money.
Some adults can help their parent(s) formulate an aging plan, but others really want to help by controlling the task and don’t realize that it may create unnecessary conflict, both with the parent(s), and even with other immediate family and beyond.
If you don’t want to cause family conflict, it can be helpful to have an unrelated, business-like adult to help put an outline of your plan together. I wish that people would do this with their estate attorney, but I realize that not everyone is quite ready for that.
You may need to think it through a bit. Decide who you want making medical and financial decisions if you are unable. Who would care for dependents and how that would be financed. If you may need care, is long-term care insurance a possibility? Make some lists of assets and who they would go to.
Don’t wait too long as you need to get the paperwork done to solidify these plans. Sure, the State of Texas has some really helpful documents that you could use. You can view them on the Texas State Law Library website. https://guides.sll.texas.gov
You can view Texas Long Term Care Insurance at https://www.tdi.texas.gov/consumer/hicap/hicapltc05.html
BUT, you are going to want to get the advice of an excellent will and trust attorney to augment your plan,g ive you situation specific advice and draw up your documents.
If you do need another adult to chat with, or an attorney recommendation, feel free to call. I’m sure that I can help.
Here’s what you could do TODAY to make things easier for your Heirs while you are getting organized to talk to an Attorney* or saving up funds for your will or trust:
I’m a big believer in planning for the future. There is more to the future than retirement and who knows what those future life adventures may hold for you? I don’t understand why more people don’t get to exploring their future finances. It’s easy.
There are a lot of planning features associated with accounts that you may already have. Let’s say that you have a 401(k). You should be able to access the company where that account(s) is held and do some retirement planning from there. You don’t have a retirement account yet? There are plenty of budgeting apps that can get moved along to your next step.
Wouldn’t it be interesting to know what would happen if you:
Please give it a try and see how much fun future planning can be.
When an individual accepts Medicaid nursing facility services, whether those are home or community-based; and related hospital and prescription drug services, they may be obligated to repay some of those services. To further complicate the issue, after death, their estate may be obligated to re-payment. That repayment obligation is often referred to as the “Clawback”.
Although Medicaid is a federal program, individual states may also make their own requirements.
Please remember that if there is a letter received from the Texas Medicaid Estate Recovery Program (MERP), and the cause of death was related to COVID, you need to call 800–641–9356. They may be able to work with you and give you some help.
It only affects long-term care services and supports that you received AFTER you turned 55 and you must have first applied for the services AFTER March 1, 2005. Anyone who applied for the services before March 1, 2005 does not have to follow the Medicare Estate Recovery Program (MERP), rules.
Adverse Possession: When a person without a legal right Inhabits a property in an attempt to gain ownership.
Affidavit of Heirship: A declaration of the Intestate Heirs to an Estate. Requires two disinterested witnesses who have personal knowledge of the family over time.
Bond: Insurance for performing Estate Duties.
Codicil: an Amendment to a Will.
Creditor: Company or individual to whom payment of a debt is owed from the Estate.
Decedent: Person who has passed away.
Executor: Person(s) selected to pay Creditors and distribute remaining assets to the Heirs in accordance with the will and Texas law.
Fiduciary Duty: Requirement to hold the interests of another above your own.
Interstate: Did not leave a Will.
Letters of Administration or Letters Testamentary: A Court issues these and they allow the Administrator or Executor(s) to act.
Small Estate Affidavit: Used to transfer assets of under$75,000, excluding any Homestead or exempt property.
When you have to appear at the Bexar County Probate Court, it helps to know where to go in the cold conference. Luckily, for you, this gorgeous pink granite building on Nueva, between cannot be missed.
if you enter these steps at the front of the building, you will be closest to the entrances for both probate courts, one and two. If you do want a ramp or simply avoiding steps, go around to the left side of the building, and that will take you into the museum from their head, straight down the long haul and make you right at the arches. That will take you directly into the courthouse entrance, and you will make a right turn to go down the hall to court one and two. The aware that there will be security at either door, so take all that loose change out of your pockets and zip up your hand bags!
I like to park in the covered lot a block and a half away at . parking is five dollars.
I get asked a lot of Probate questions, particularly about whether or not someone needs a Texas Attorney to Probate a will. The short answer is “Yes”, but there is an exception to that.
If the Estate in question falls under the “Small Estate“ parameters of the Texas Property Code, Chapter 205, then you don’t necessarily need an Attorney and may be eligible to file the Small Estate Affidavit.
Although Texas has a number of excellent legal forms which you can use yourself, Probate in Texas or any state is a complex process. Unless the Estate is very small, with no real property, and only one or two heirs who are in complete agreement, I would really suggest that you get an Attorney right away. This is a complex process and you want to be able to have the necessary advice, have someone to prepare your paperwork, and be able to really get you the Probate help you need, without missing any deadlines, or making any mis-steps.
Legal advice is an estate expense. Why wouldn’t you hire a great Estate, Trust, and Probate Attorney, have peace of mind, and keep all of your hair?