Inheriting After Age 60: How to Pay Inheritance Taxes While Preserving Your Wealth

As life expectancy increases, the landscape of inheritance is changing: more and more often, it is older adults themselves who receive an inheritance and must deal with the complexities involved in paying estate taxes.
 

How can you meet these financial obligations while preserving your family’s real estate assets? To address this major challenge, the PraxiFinance Group—a specialist in real estate monetization since 1990—offers solutions that enable seniors to cover inheritance taxes while preserving their valuable assets.
 

Tailored Solutions for Financing Inheritance Taxes
While inheritance taxes can be a significant financial burden for seniors—especially when the bulk of their estate consists of real estate—there are specific mechanisms available to convert a portion of the value of that estate into usable capital without having to sell it. This option offers an effective way to finance estate taxes while avoiding the need to part with a family home that is often steeped in history and emotional significance.
 

Three main solutions are proposed to enable seniors to pay their inheritance taxes without sacrificing their assets:
 

1. Reversible mortgage: A loan that provides a financial reserve in exchange for a mortgage lien on a property. Available exclusively to individuals over the age of 60, this loan requires no repayments during the borrower’s lifetime. The loan is repaid upon the sale of the property or after the borrower’s death. This capital can thus be used to pay estate taxes, while preserving the property for future generations.
 

2. Reverse Mortgages: A financing solution for seniors who wish to retain their assets, a reverse mortgage is a loan secured by real estate that allows borrowers to obtain a loan at an attractive interest rate without the need for borrower insurance or a health questionnaire. This solution is ideal for covering estate settlement costs without having to sell the property, thereby preserving full ownership of the assets.
 

3. Sale of bare ownership: An arrangement that allows you to obtain cash while retaining the right to occupy the property. A bare ownership sale allows you to transfer the bare ownership of a property while retaining the usufruct for life—that is, the right to occupy or rent it out. This solution provides immediate capital to finance estate taxes. The heirs can thus maintain their connection to the property.
 

"Given the challenges posed by paying inheritance taxes, it is essential to offer seniors solutions that allow them to preserve their real estate assets while gaining access to the liquidity needed to cover these costs," says Boris Intini, CEO of the PraxiFinance Group.