Ask Our Experts
By: Compiled by Carole Fleck; Source: AARP Bulletin Date Posted: 2007-04-11 12:53:00-04:00
The AARP Bulletin 's Ask Our Experts column provides answers to important questions affecting older Americans. Read below for this month's column, or review our archive of previously published questions and answers sorted by topic. (Note: Recent news or changes to regulations may affect the guidance offered in this previously published column.)
Submit your own question to the Ask Our Experts column via our easy-to-use online form.
Q. My mother wants to put my name on a joint checking account in case she gets sick and needs her bills paid. All the money in the account is hers. If she does this, would I be responsible if she bounced checks?
A. No. You would not be responsible for her bounced checks. But it would be better if she told the bank she wants you to be able to withdraw money on her behalf under what's called an agency, or convenience, account. That would give you the authority to write checks on her account. But it's not your money, or your responsibility, if she bounces checks. —Expertise provided by Sally Hurme
Q. I'm thinking of taking out a debt consolidation loan. Will the amount affect my ability to qualify for a reverse mortgage?
A. No. Having the loan wouldn't disqualify you as long as the loan amount plus your remaining mortgage and other debts didn't exceed the value of your home. All your debts must be paid off with the money you get from the reverse mortgage. Here's an example: Let's say you owe $100,000 on your mortgage, your loan and other debts. Based on your age, home value and interest rates, you qualify for $125,000 under the reverse mortgage program. You'd be able to pay off all the existing debt and still have $25,000 left. (The $125,000 must be repaid when you or your heirs sell the house.)
A reverse mortgage can be expensive, but it lets you tap into your home equity and continue living there. The older you are when you take the loan, the more you can get from your home and the less you'll pay in fees compared to the size of your loan. For more information, go to www.aarp.org/money and click on Reverse Mortgages. —Expertise provided by Sally Hurme
Q. I need help with my prescription drug costs and I'm too young for Medicare. What can I do?
A. Contact the manufacturer of your medicine: Most companies offer free or low-cost prescription drugs to low-income people who meet their eligibility guidelines. Also, many states provide help. Call your state health department and check out AARP Bulletin Online(click on "Your guide to state-run and private pharmacy assistance programs"). Other sources: Needymeds.com(click on Patient Assistance Programs) and the Pharmaceutical Research and Manufacturers of America. —Expertise provided by Lynda Flowers
preview