62+ homeowners tap equity as line-of-credit, lump sum, or lifetime income — no monthly payments, tax-free draws.
The Home Equity Conversion Mortgage (HECM, FHA-insured) lets homeowners 62+ borrow against home equity with no monthly payments — loan repaid when home is sold or borrower dies. Modern uses: (1) HECM Line of Credit that GROWS at loan rate + 0.5% — powerful sequence-of-returns hedge, (2) fund LTC without selling home, (3) delay Social Security to 70 for max benefit, (4) bridge to Medicaid planning. Not for people planning to leave home to heirs unencumbered.
Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.
Irrevocable income-only trust funded 5+ years before Medicaid application shelters home and assets from spend-down.
Transfer the primary residence to an adult child who lived there caregiving for 2+ years — no Medicaid transfer penalty.
In select states, the well spouse refuses to contribute — Medicaid must cover institutionalized spouse, may sue later.
Wartime-era veterans (or surviving spouses) needing help with ADLs get up to $2,795/mo tax-free — stacks with Medicaid.
Written contract paying an adult child market rate for caregiving spends down assets without Medicaid transfer penalty.
Immediate irrevocable annuity converts spend-down assets into an income stream for the community spouse.
Ladybird deed transfers home at death with §1014 step-up, avoids probate, and doesn't trigger Medicaid transfer.
Post-65, HSA funds pay Medicare Part B/D/Advantage premiums + LTC insurance premiums tax-free.