Millionaire but cash poor

[Rita Camden]

My aunt has a condo in California and farm ground in Indiana. She owns both free and clear. Together her assets total more than $1 million, but she is out of cash. She wants to stay in her condo but can't afford to pay for healthcare on her income. I have tried Reverse Mortgage, but was turned down because the HOA is too small (10 units) and doesn't have enough cash. I have tried Equity LOC but was turned down because the condo is in a revocable trust. They said she could revoke the trust, leaving them high and dry, even though the trust specifically says that as trustee, I can retain any assets needed to meet commitments. The farm ground is also in the trust which, I assume makes it ineligible, too. The farm ground is part of the family farm so we don't want to sell it either.

[Dan Lieberman]

Liquidity will become very important when we enter the next downturn.  My advice - if you can't borrow against the assets, your best bet is to sell the farm property.  It may not be what you want to hear, but there is no point in owning these properties if you aunt can't even pay for healthcare and basic quality of life items.