Ask Terry Questions Reverse mortgage impact on senior med program?

Reverse mortgage impact on senior med program?

By Terry Savage on June 21, 2016 | Housing / Real Estate

We own our home. Have no debts. Payoff our charge cards monthly. Our only income is Social Security. My husband has an Roth IRA annuity of $44,000. Which we use to pay our real estate taxes. We are 72. We’ve decided to apply for a Reverse Mortgage. I have Multiple Sclerosis and qualifiy to get my $5k per mo. medicine for free because of low income. I know that an RM doesn’t count as income but Will a RM affect my ability for free medicine?

Terry Says:  This is a good question, and I want to make sure that you get the right answer.  A reverse mortgage is a tax-free return of your own investment, so it is not reported as income on your tax return.  However, I think you should ask the specific government program whether they would consider this as income for qualifying for your medicines.  And I would like it if you would write back to me with the answer they give you.  (And if you say that it IS being counted against you, I will pass that on to my friends at NRMLA — the Reverse Mortgage association –so maybe they can put some pressure on government to change this!)  So please let me know —



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