Sept/Oct 2021 Reverse Mortgage Magazine

a condominium could free up cash to bolster your sav- ings and might also reduce outlays for property taxes and upkeep. Houses age, too, and if you keep the family home, its maintenance needs are likely to increase. On the other hand, relocating could boost—or lower—other expenses. State income taxes and local property taxes, as well as the overall cost of living, can vary widely by location. Galinskaya talks of a couple who were trying to decide whether to stay in California or move to Washington state, where their adult children had settled. The decision became much easier when their accountant mentioned that Washington has no state individual income tax. Nor do six other states—Alaska, Florida, Nevada, South Dakota, Texas and Wyoming—though some impose other levies, such as Washington’s state estate tax. Will We Leave Our Money to the Kids or to Charity? That this question even comes up means that you’ve worked through the basic issues, but it may still inspire passionate conversation. Galinskaya relates the story of one heated discussion between a self-made businessman, who felt strongly that his children should make their own way financially, and his wife, who was adamant about sharing their wealth with the kids. Their solution included establishing a multigenerational health and education exclusion trust, or HEET, which is designed to see to it that the children and future descendants will not have to worry about medical or college costs. The couple also agreed to help their children with home purchases and to set aside a fund for each child to cover emergencies or retirement. Satisfied that they had responsibly provided for their children, they gave the rest of their estate to charity. For more information, contact Merrill Financial Advisor Brian Fields of the Camp Hill, PA, office at 717-975-4602 or bfiels3@ml.com. Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S” or “Merrill”) makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (“BofA Corp.”). MLPF&S is a registered broker-dealer, Member SIPC and a wholly owned subsidiary of BofA Corp. Investment Products: Are Not FDIC Insured Are not Bank Guaranteed May Lose Value Money Sense REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2021 7