Deciding when and how to give an inheritance is an important decision for many families. There’s a growing appreciation for giving with “Warm Hands”—providing financial support to children or heirs while still alive—versus waiting to give with “Cold Hands,” which refers to leaving assets after death. This approach allows for personal connection, shared experiences, and the joy of seeing your loved ones benefit from your generosity.
Here are some of the key benefits of giving with Warm Hands:
- Witness the Impact: Experience the joy of seeing your children or heirs use the inheritance for important life milestones like buying a home, paying off debt, or investing in education.
- Strengthen Family Bonds: Offering financial support while alive creates an opportunity to build deeper connections and create lasting memories.
- Flexibility for the Giver: You can control the timing and size of the gifts, tailoring support to your loved ones’ needs during your lifetime.
A reverse mortgage, particularly a reverse mortgage line of credit (LOC), can be a valuable financial tool to help make this possible. By tapping into the equity of your home, you can:
- Access Funds without Monthly Payments: A reverse mortgage allows you to receive tax-free cash while remaining in your home, with no required monthly mortgage payments.
- Grow Your Line of Credit: The unused portion of your reverse mortgage LOC grows over time, providing more flexibility for future financial needs.
- Preserve Your Lifestyle: You can continue to live comfortably in your home while giving generously to your children and heirs with Warm Hands.
For more information on how a reverse mortgage can help you give with Warm Hands, please, contact Michael Pankow, NMLS 220611, at 916.296.7765.
