Using a Reverse Mortgage for an Early Inheritance with Harlan Accola

Mar 25, 2025

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There’s a saying, “The best time to plant a tree is right now.” Does that logic apply to inheritances?

Well, it might in some cases. In other words, is there a benefit to giving your kids an early inheritance? And how exactly would you do that? Harlan Accola joins us today to talk about how a reverse mortgage can accomplish that.

Harlan Accola is the National Reverse Mortgage Director at Movement Mortgage, an underwriter of Faith and Finance. He is also the author of Home Equity and Reverse Mortgages: The Cinderella of the Baby Boomer Retirement.

Understanding a Home Equity Conversion Mortgage (HECM)

Reverse mortgages have evolved significantly over the years, offering new opportunities for financial planning in retirement. A Home Equity Conversion Mortgage (HECM), often referred to simply as a reverse mortgage, is an FHA-insured loan that allows homeowners to convert part of their home equity into cash while still maintaining ownership.

Unlike some traditional reverse mortgages of the past, a HECM is non-recourse, meaning borrowers will never owe more than the home’s value, and the loan cannot be called due as long as they continue to pay property taxes and insurance and live in the home. The equity remains with the homeowner and their heirs, with the only change being the portion that is used. Another advantage? The proceeds are tax-free, making it a useful tool for financial planning.

The Role of Reverse Mortgages in Retirement Planning

While many people focus on eliminating debt entirely in retirement, a reverse mortgage can serve as a strategic financial asset rather than simply a last resort. Many retirees overlook the potential of their home equity as part of their financial portfolio. Instead of just passing a home down to heirs, a reverse mortgage allows parents to leverage their equity while living, providing financial assistance to their children and grandchildren when they need it most.

Giving an Early Inheritance: Why It Makes Sense

One of the most meaningful ways to use a reverse mortgage is to give an early inheritance—sharing wealth with children or grandchildren while still being alive to witness its impact. As Ron Blue famously said, “Do your giving while you’re living so you’re knowing where it’s going.”

Biblical wisdom teaches that wealth should be passed along with wisdom, guiding the next generation not only in how to manage money but also in understanding generosity and stewardship. Many parents already do this when their children are young—teaching them to give, save, and spend wisely. But what about when they are adults? A reverse mortgage provides an opportunity to continue that guidance by offering financial assistance at a time when it may be most needed.

How an Early Inheritance Can Help

Here are some practical ways a reverse mortgage can be used to bless children and grandchildren:

1. Helping with a Down Payment on a Home

With rising housing prices and interest rates, many younger adults struggle to afford a home. Parents can use their home equity to provide a down payment for their children, reducing the amount they need to borrow and making homeownership more affordable.

2. Funding Private Christian Education

Many families prioritize faith-based education, but tuition costs can be a burden. A reverse mortgage can help cover private school tuition for grandchildren, ensuring they receive a strong biblical foundation in their education.

3. Supporting Family Mission Trips or Vacations

Shared experiences can create lasting memories and strengthen family bonds. Whether it’s funding a mission trip or a multi-generational vacation, using home equity can allow families to invest in relationships and spiritual growth together.

Are There Risks to Using a Reverse Mortgage for an Early Inheritance?

Like any financial tool, a reverse mortgage should be part of a well-thought-out plan. Here are a few key considerations:

Ensure Long-Term Financial Stability—Before giving away wealth, make sure your own financial needs are met, including healthcare and living expenses.
Plan for Healthcare Costs—Unexpected medical expenses can arise, so long-term care planning is essential before using home equity for other purposes.
Use Funds Wisely—An early inheritance should be given with intentionality, not just as a financial gift, but as an opportunity to teach stewardship and align with biblical principles.

Making the Right Decision

If you’re considering a reverse mortgage as part of your financial plan, here are a few steps to ensure you’re making a wise choice:

Work with a Trusted Christian Advisor—Seek guidance from a financial professional who understands both biblical principles and financial wisdom. That's why we recommend working with a Certified Kingdom Advisor (CKA), which you can find at FaithFi.com. Just click "Find a Professional."
Pray About It—Ask God for wisdom to determine how this decision fits into His plans for your life and your family’s future.
Evaluate Your Goals—Consider how a reverse mortgage aligns with your long-term financial and spiritual priorities.

By planning wisely and giving generously, you can leave a legacy of faith and financial stewardship that impacts generations to come.

For those interested in exploring whether a reverse mortgage is a good option for their retirement plan, the team at Movement Mortgage can provide guidance. Learn more at movement.com/faith.

On Today’s Program, Rob Answers Listener Questions:

Is it ideal for a husband and wife to share the same checking account, and how do we manage such to avoid conflict?
I have a debt of about $4,300. I’ve been considering if I should get a balance transfer on a new card or take out a loan from my 401(k).
My sister is 76 with disabilities, and I have her power of attorney. Medical facilities have had data breaches, so I was trying to freeze her credit. She's never had credit - do I need to freeze it, or can I leave it?

Resources Mentioned:

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