With a granddaughter diagnosed as intellectually and developmentally disabled, you have been contributing annually to the special needs trust your son and daughter-in-law established for her benefit several years back. Until last year, while you had been officially retired for a decade, both of you were earning consulting income. Those funds enabled you, without incurring debt, to redesign the family home so as to better accommodate your needs as you enter your eighties.
For years, your granddaughter has been receiving government benefits, so that it was important for her to have funds for “extras’ without jeopardizing those “means-tested benefits”, and the special needs trust has been a great solution.
As she has aged (now in her thirties), she’s developed several interests that you want to help her explore through private lessons in music and dance. Doing that, however, would necessitate raising your contributions to the trust by a substantial amount, and you’re reluctant to cash in investments or reduce your “reserves”, rendering yourselves less than prepared for any unexpected financial needs of your own.
Rather than upsetting the delicate “budget balance” you’re achieved by redesigning the home while preserving your investment portfolio, and reserve funds, you might consider using your “housing wealth” to help your granddaughter pursue her new activities in music and dance. Since your plan is to “age in place”, you’ll be able to continue to enjoy your home, with no needs to make monthly mortgage payments.* In addition, the two of you will be more prepared to handle any future financial needs of your own.
Tapping into your own housing wealth might well help your granddaughter enjoy the “wealth” of dance and music’s therapeutic benefits.
*Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees. David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org
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