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Bernard Said:

Are settlement costs from a reverse mortgage deductible on my income taxes?

We Answered:

Mortgage interest is deductible in the year paid. That being said, it's important to note that the IRS considers points to be amortized over the life of the mortgage (this is in fact a grey area, some tax courts have held that the points are deductible up front.) How much money are we talking? Is it worth fighting with the IRS? If so, go to a CPA for preparation. If not, decide whether you want to risk it or not.

Jacqueline Said:

How do I remove my wife from home ownership to get a reverse mortgage, she is not 62 to qualify..I am.?

We Answered:

You don't indicate what state you are in, but it should be possible to quit claim your wife off the property, do your reverse mortgage, and then quit claim her back on. Not to mention the fact that in many states she would have dower rights even after the quit claim process. This sort of situation takes place all the time and so there should be a well-worn path to follow.

Also, the bank never "owns" a home when there is a reverse mortgage. It's just a lien on the property like any other type of mortgage. If the person with the reverse mortgage passes away then the heirs have the right to refinance out of the reverse mortgage - or if the home goes on the market for sale the proceeds will be used to pay off the reverse mortgage and anything left over goes to the heirs.