If New Jersey wasn’t a hard enough a place to retire…

Sky-high property taxes, insurance and (usually) cold weather.  It is not difficult to understand why many people move out of New Jersey when they retire.  Yesterday they just got one more.  In  Cameron v Ewing  the Appellate Division ruled that “reverse mortgages”, increasingly popular with older people looking to tap the equity in their homes while they still live in them, are subject to levy and execution to pay debts.  That means every month when a bank sends the reverse mortgage check, the creditor just takes it – or at least part of.   The saving grace is that Judge Ostrer held it was  subject to limitations like a wage execution. N.J.S.A. 2A:17-56 So instead of losing your house to creditor, you just lose a little bit of it each month.  However, if you  move to Florida (also a popular place to retire I hear), creditors can never reach your home because Florida has a state constitutional provision called the “homestead exemption”.   By the way, I am licensed and practice in New Jersey and Florida.

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