Attention Financial Advisors, CPAs and Attorneys - Benefits of a Reverse Mortgage Create income to pay for long-term care insurance. Fund life insurance, annuities, wealth replacement trusts, education savings for children or grandchildren, and/or other financial products. Decreased vulnerability to estate taxes or other transfer taxes. Tax deduction on the accrued interest. Mortgage funds are tax-free. Pay an ex-spouse their part of equity in a home as part of a divorce settlement. Pay federal or state taxes, and property taxes. New source of capital for a business (including a farm or ranch). Increase inheritance, pass on inheritance while alive, split an estate, or provide liquidity to an estate. Prevent foreclosure of a senior homeowner. Set-up a trust and lifetime income for a dependent adult child (mentally or physically challenged). Avoid filing bankruptcy. Afford legal services to file a lawsuit. Attract new clients for a will, living trust, power of attorney, and other legal services. Avoid liquidating an investment, savings or IRA.