Estate Maximization is a specialty program that The Diversified Group has developed to create: larger, liquid, and tax free estates! 

What it does is it uses equity in your illiquid home to create an estate that is generally 150% - 350% of the value of your home that is guaranteed!

Our program also does this without any further monthly or annual out of pocket expenses!

                       
For example, John and Sue Smith who are both 62 and have a home they own outright and it is worth $250,000. We leverage $103,000 in equity and if they are in average health we can guarantee their heirs $710,000 that would be tax free and available generally within 30 days after their passing.

When they pass their heirs would have the option of selling the home after they passed and distributing the proceeds (as there should still be about $147,000 in equity, but that would depend on the market when they passed it could be less or more) or taking a $103,000 of the $710,000 and satisfying the outstanding debt and then keeping the home AND the balance of $607,000!

HOW THE PROGRAM WORKS

First, we use a federally FHA backed reverse mortgage to generate a guaranteed monthly benefit.

Second, we secure a GUARANTEED Universal or Whole Life insurance policy through a company such as Lincoln National, John Hancock, or Genworth. In the case of couples we secure what is known as a second to pass policy. This policy will be paid with the income generated by the reverse mortgage.

Lastly, you live in your home the rest of your lives just paying the taxes and insurance as you had already been doing you never have to repay on the reverse mortgage! Your life insurance premiums are guaranteed to never go up and coverage amount will never go down and is guaranteed to be there no matter how long you live!


BENEFITS

• Life insurance proceeds are tax free and generally paid within 30 days of passing.
• Reverse mortgages are federally backed by FHA and no liability passes on to the heirs.
• The money may be distributed how ever you wish and can be paid to a trust to be handled however you wish ie. to set up college funding.
• Money can also go to a church or charity, many charities appriciate people leaving homes to them but, many are not in the real estate business and would much rather receive the money.
• This program makes the process of having to deal with financial matters much easier as this subject comes up when loved ones (usually parents) have just passed. Many times the passing of parents can cause turmoil between the children because financial burdens such as: taxes, insurance, maintenance, utillities, selling fees, and updating all need to be addressed BEFORE the property is sold which in todays market may take years.

SUMMARY

This program creates larger estates, but not so huge as that they kids and grand kids will never have to work again. Generally an extra $200,000 to $500,000 will make sure that grand kids get to college and help make rough times a little easier to deal with.

If you would like to see if Estate Maximization would work for you and your family please give us a call at (989) 671-9690 for a free consultation.