Isnare Free Articles
Authors Contents [Add OpenSearch]
Distribute your articles to more than 6,000+ sites and 40,000+ email group publisher subscribers for as low as $2 / article...
Index  Article Directory  Finances
Embed this Article  
Robert D. Cavanaugh, CLU

Robert D. Cavanaugh, CLU x 27 articles

Liked the article? Consider buying me a beer!

Most Recent Videos Most Recent Videos

As Father Time marches on, the question of what to do with the home becomes a greater concern. In some cases, ruminating on the alternatives can dominate one's thinking. If a person is aware of the various options and chooses a path that makes the most sense, peace of mind can often be the result.

Studies have shown that 90% of married couples and 62% of single persons reach retirement owning their own homes. Coupled with non-monetary considerations of whether to stay or sell, one major objective is how to convert the equity in the home to an income.

In some cases, selling the home is the most attractive option. However, remaining in the home could be simpler and less stressful. Many people are too quick to jump to the "sell" option because they are not aware of all the options that would allow staying in the home and extracting the equity as well.

Weigh each of the following options against selling before throwing in the mental towel and listing the home.

An AARP study done in 2000 showed that more than 90% of seniors wanted to stay in their homes for as long as possible. Almost 82% still wanted to stay even if they needed care.

That is a very loud vote. Therefore, I would recommend looking at long term care insurance that either only provides home care or a more comprehensive plan that includes home care. Many seniors balk at the topic of long term care because they figure they will never go to the “home.” Statistically, 50% of them are right. What many fail to realize is that at some point almost everyone will need some kind of help. Home care benefits may provide the needed assistance while allowing the person to remain in their home.

As seniors age, the upkeep of the home may become overbearing. The lawn still needs cutting, the bushes trimmed and the flower beds kept free of weeds. The inside needs dusting; the carpet needs vacuuming and the windows need washing. Eventually, in many people's minds, these become reasons to sell.

I would invite you to put a pencil to this. Look at hiring someone to come in and clean. Hire a lawn maintenance company or the teen-ager down the street trying to pay for his car. Having these things taken care of in this manner is a lot less expensive than moving to a retirement home.

If the home is too big, close some rooms off. If it cost too much to heat or cool, seal the vents in un-used rooms.

Sometimes it may make sense (both for the senior and the child) for one of the children to move in and serve as a caretaker, cook, lawn-cutter and/or pool boy/girl.

There are several ways to get the equity out of the home, while continuing to live in the home.

First, the home could be re-financed. Mortgage interest rates today are low. Properly invested, the funds released could cover the new mortgage payments. If not, the difference could be less expensive than rent. Depending on the person's age, putting a part of the proceeds into an immediate annuity may even cover the mortgage payment and then some.

If the person has a retirement plan that mandates required minimum distributions starting at age 70 1/2, the interest deduction on the new mortgage could be a welcome offset to the RMDs, which must be included in taxable income.

For large estates subject to estate taxes, placing the home in a Qualified Personal Residence Trust (QPRT) can potentially remove the home, and any appreciation from the date of the transfer into the trust, from the taxable estate. Proper trust drafting can also provide for the housing needs of the survivor of a married couple and, ultimately, leave the home to the children.

Selling the home to the children is another option. By structuring the sale and lease back according to the rules, the $250,000 single person or $500,000 married couple capital gains tax exclusion could apply. Here, again, the parents would continue to live in the home and pay rent to the children. This removes the home from the taxable estate as well.

A gift-leaseback is an alternative. The value of the home will use up part (or all) of the lifetime unified credit. Consult a tax attorney if the value of the home is large and this option is one of the ones on the table.

If the homeowner(s) are age 62 or older, a reverse mortgage may be a viable option. The National Council on Aging calculates there are 13.2 million seniors who could qualify for a reverse mortgage of $20,000 or more. The average would be $72,000.

Reverse mortgages can reduce or eliminate the children's inheritance. Today, there are Federal Rules for reverse mortgages and about 90% are federally insured. Fees can be high and will differ among lenders. Shop around.

Prior to making the decision to stay in the home or sell, each of these options should be part of the discussion among the senior, their children and financial advisors.

Rate this article:
Robert D. Cavanaugh, CLU is a 36-year financial and estate planning veteran and author of the free newsletter, "The Estate Preservation Advisor". For cutting-edge, easy-to-understand financial planning resources and techniques to increase your income, reduce taxes and preserve your estate, go to
Important NoticeDISCLAIMER: All information, content, and data in this article are sole opinions and/or findings of the individual user or organization that registered and submitted this article at without any fee. The article is strictly for educational or entertainment purposes only and should not be used in any way, implemented or applied without consultation from a professional. We at do not, in anyway, contribute or include our own findings, facts and opinions in any articles presented in this site. Publishing this article does not constitute's support or sponsorship for this article. is an article publishing service. Please read our Terms of Service for more information.

Most Recent Articles

Kitchen Decoration Process

An Article by Hasan Sarker in Home Management

6 hours ago

The kitchen is not a simple stack of cabinets, hoods, stoves and electrical appliances, but is combined with the whole kitchen environment to create a pleasant and enjoyable living space. But the face of the kitchen decoration is a lot of people can start, just hydropower transformation of this one problem can be stumped a lot of heroes, so a clear and practical kitchen renovation Raiders is even more important...

How to Find Best Contractor Payroll Management Solution in Australia

An Article by Tristan T in Business Management

9 hours ago

Now-a-day, every organization has its own unique set of head - Basic salary, Allowances, and Reimbursements. In addition to these there are sometimes variable earnings, and deductions in payroll. Additionally, there could be out of payroll payments that need to be paid once in a while. Then there is the concept of benefits which could be in or out of payroll too...

How Audio Books Can Help You in Your Workout

An Article by Jawed Smith in Computers and Technology

1 day ago

There's no doubt about it. Audio books have made life a lot much easier. For those people who want to exercise to remain in excellent shape, audio books can assist us to accomplish this with less tension. Normally people think audio books are very expensive or very monotonous. That's not actually true...

RevenueHits Review Earne – Make $800 Per Month

An Article by Sabrina Akter in Travel

1 day ago

earneRefresh: There's a mid year promo that you should exploit at the present time. In the event that you join BEFORE July fifteenth 2017 and begin acquiring with Revenuehits you will get an additional reward. Here are the terms:• A new Publisher who will – join to RevenueHits, utilize the stage for a time of 1 month and reach no less than 1000 USD in Revenues – will be remunerated with 100 USD Sign-Up Bonus;• A new Publisher who will – join to RevenueHits...

Omega De Ville Prestige Co-Axial Chronometer Automatic Power Reserve 424. Men’s Watch| a Classic Returns in a Modern Disguise

An Article by Jason Ca in Entertainment

2 days ago

The bottom line:The Omega De Ville Prestige Co-Axial Chronometer Automatic Power Reserve 424. 20. 37. 20. 02. 001 Men’s Watch mixes olden looks to a new design and offers a lot to enjoy. Its noticeable quirkiness is way apart from what you usually find in the mainstream brands and is free from the unnecessary conservatism...

What Are the Benefits of Aluminium Shutters?

An Article by JOSEPH ZAMMIT in Home Management

2 days ago

Aluminium is a strong and durable material that is ideally suited to external applications. It does not warp or become brittle like wood, it does not rust like iron and is perfectly suited to the harsh Australian weather conditions. It therefore follows that aluminium shutters are the best window covering option for your home...

2017 NS0-191 Dumps NCSE NS0-191 Exam Questions NetApp NS0-191 Practice Exam

An Article by Delia Green in Computers and Technology

2 days ago

NS0-191 exam is a new turning point in the IT industry. Killtest is a site that comprehensively understands the Network Appliance NS0-191 exam. Killtest is recognized as the leader of a professional certification exam, it provides the most comprehensive Network Appliance certification standard NS0-191 Dumps NCSE NS0-191 Exam Questions NetApp NS0-191 Practice Exam...

Why Quality Content is Important For Your SEO

An Article by Kate Cage in Internet

2 days ago

Search engine optimization is an important part of your business content marketing strategy. It influences your position in online search results, allows you to generate more traffic, and consequently helps you generate more leads. In other words, SEO helps your business grow. But there is a catch, you need to create quality content in order to implement SEO in the best way possible...

Healthy Employee, Productive Employee

An Article by Arati Shah in Wellness, Fitness and Diet

2 days ago

The growth of an organisation is determined by the productivity of their employees. The productivity is achieved when the employee is focused, healthy and has a positive competitive work environment. A healthy human state leads to low absenteeism and better work quality and output. Employee productivity has a direct tie to company wellbeing and the bottom line...

Lesser Known Facts About Kanwar Yatra

An Article by Devendar Agarwal in Religion

2 days ago

Facts about Kanwar YatraSawan is here. Sawan is synonymous with Lord Shiva and his worshippers, also known as Kanwariyas, they travel to places like Haridwar, Allahabad, Gaumukh, and Gangotri in Uttarakhan and Sultanganj in Bihar to get Gangajal, i. e. the holy water from the river Ganaga, to offer to Lord Shiva...

Modern Home Architecture & Decor Trends of 2017

An Article by Bimal Hegde in Real Estate

2 days ago

If you plan to buy a property in Bangalore, you surely want to keep yourself updated about the latest trends in architecture and home decor. There are plenty of 2/3bhk flats in Bangalore available for sale, but you would want to buy one that is trendy, contemporary and well designed. So, what are the residential architecture and decor trends for the year 2017...

Developing Mobile Apps 70-357 Braindump

An Article by Kruis Barry in Education

2 days ago

You can choose Passcert Developing Mobile Apps 70-357 braindump for your 70-357 Certification Exam. Passcert Developing Mobile Apps 70-357 braindump are prepared by IT Professionals. We are strongly confident that you will pass your 70-357 exam the first time. With our complete Developing Mobile Apps 70-357 braindump, you will minimize your Microsoft cost and be ready to pass your 70-357 exam on Your First Try...

H12-321 HCNP-WLAN-CEWA Exam Practice Test

An Article by Kruis Barry in Education

2 days ago

If you feel that you purchase Passcert H12-321 HCNP-WLAN-CEWA exam practice test, and use it to prepare for the exam is an adventure, then the whole of life is an adventure. Gone the furthest person is who are willing to do it and willing to take risks. Not to mention that Passcert H12-321 HCNP-WLAN-CEWA exam practice test are many candidates proved in practice...

Why Marketing Your Book is Important

An Article by Author John Fleming in Marketing

2 days ago

There are between 600,000 and 1,000,000 books published every year in the US alone. On average, they sell less than 250 copies each. With these given data on book publishing, what will you do to make you and your book stand-out. The answer is marketing. With the fast-paced book competition around the world, you need to engage yourself in the hands of the powerful marketing...

Ski and Snowboard Carriers Perfect Solution For Transporting Your Snow Gear

An Article by Tony Bulic in Travel

3 days ago

With projections and unique shapes, one cannot deny that skis, snow boards and allied snow gear just don’t pack up well. Some are undeniably long, some gear is squat and wide or bulky. Trying to fit them all into the meagre storage space of any car is going to be a challenge – they simply occupy too much space...

MLA Style Citation:
CLU, Cavanaugh, D. Robert "Simplifying A Difficult Senior Planning Decision: The Family Home." Simplifying A Difficult Senior Planning Decision: The Family Home. 21 Mar. 2007 23 Jul. 2017 <>.
APA Style Citation:
CLU, Cavanaugh, D. Robert (2007, March 21). Simplifying A Difficult Senior Planning Decision: The Family Home. Retrieved July 23, 2017, from
Chicago Style Citation:
CLU, Cavanaugh, D. Robert "Simplifying A Difficult Senior Planning Decision: The Family Home." Simplifying A Difficult Senior Planning Decision: The Family Home
Copy and paste the code below to embed this article:
<a class="embedly-card" href="">Simplifying A Difficult Senior Planning Decision: The Family Home</a> <script>!function(a){var b="embedly-platform",c="script";if(!a.getElementById(b)){ var d=a.createElement(c);,d.src=("https:"===document.location.protocol?"https":"http")+"://"; var e=document.getElementsByTagName(c)[0];e.parentNode.insertBefore(d,e)}}(document);</script>