There are a number of advantages to not letting someone inherit your house. One of the problems with inheritance is that it is taxed; this means that someone may need to sell what they inherit in order to be able to pay the taxes on it, such as when homes are inherited. Another issue is that the maintenance of that estate may be an issue, especially if the home is older and requires a lot of maintenance. Of course, homes that are expensive can make it difficult to pay the property tax. With all of these factors in mind, the owner may wish to debate a reverse mortgage.

A reverse mortgage works simply enough. A regular mortgage is when the homeowner takes out a loan on the home based on its current equity based on his ability to pay that loan off using the home itself as collateral. This means that, should the owner be unable to make payments on that loan, the bank, or other lending institution, is able to take that home. In a reverse mortgage, the bank gives the homeowner a loan with the assumption that the bank will effectively inherit the home once the owner dies. In essence, the owner effectively takes out a loan against the equity of the home with the intent of forfeiting it to the bank at some point.

An interesting point is that, unlike a regular loan., the person cannot be evicted. After all, the idea is that the person gets to keep the home as long as they are alive, and it goes to the bank once the person is no longer in effectively not the owner. Those still living at the home may face eviction, of course, but that is the bank's right as the owner of the home at that point. Until that point, of course, the home is still effectively the property of the current owner. The owner is thus still able to enjoy most of the advantages of home ownership.

This is not to say that the owner enjoys the full range of rights of possession. He may not take out any more loans on the property, and may not set up any heirs of the estate. Although this may seem obvious, some people do tend to forget to update their wills once they have settled the reverse mortgage with their bank. By the same token, the owner must pay the property as if it were still one of his possessions; after all, the property is still his until his death. This is something that should be allowed for when the loan is taken out, or additional issues may crop up.

For someone who is looking to enjoy his retirement, a reverse mortgage loan may not be a bad idea. He creates a nest egg for himself and his inheritors do not have to worry about as much inheritance tax. Also, this ensures that widows that were may have been effectively abandoned when their husbands died without a pension are taken care of until their deaths. This can also allow for the price of a home nurse or retirement home should that be desired. With a little thought and planning, the reverse mortgage can take care of any number of small problems that may crop up towards the end of someone's life.