Finalising an estate without selling the family property

101 Uses for a Reverse Mortgage

Real stories. Real solutions.

Welcome back to our series, 101 Uses for a Reverse Mortgage, where we highlight the unexpected, practical ways Australians are using reverse mortgages to create security, freedom, and financial independence in retirement.

Each week, we bust the myths surrounding these loans by sharing real case studies* — no hype, no jargon, just real people solving real challenges with the right guidance and advice.

Case Study 5: Finalising an Estate Without Selling the Family Property

Client Profile:

• 82-year-old widow
• Lives in regional rural area
• Sole income: Age Pension
• Has lived on the family property for over 65 years
• Adult children also reside on the land

Challenge

After her husband passed away, our client was left with the responsibility of finalising the estate. Probate was underway, but completing the process required access to funds – and fast.

In addition to covering legal costs, the property (which she still calls home) needed some practical improvements to make it safer and more comfortable as she aged. She also wanted the flexibility to access extra funds in the future for health, lifestyle or aged care expenses – should the need arise.

Selling wasn’t an option she was willing to entertain. The property had been in the family for generations. It wasn’t just her home — it was her legacy. With her son and daughter still living on the land, uprooting everything to move into town wasn’t on the table.

What she needed was a way to stay, and stay with dignity — while still meeting her financial obligations.

Solution

Her property had recently been valued at just under $5 million, with an additional investment property worth $450,000 (carrying a small mortgage). After reviewing her goals, we arranged a reverse mortgage loan structured as follows:

• Total loan amount: $505,257
• Initial advance: $295,000
• Cash reserve: $205,000 (for future needs)
• Loan setup fees: $5,257

The loan was used to:

• Cover all legal and estate-related costs
• Complete urgent property upgrades
• Create a cash buffer for aged care and health-related needs down the track

A lifetime tenancy agreement wasn’t required — but it was discussed as an available option if circumstances changed.

The Outcome

With the reverse mortgage in place, she stayed in the home she loved, retained full ownership and control, and secured the funds she needed to wrap up the estate and future-proof her lifestyle.

There was no need to make repayments during the loan term. The loan will be repaid once the property is eventually sold — at a time that suits her or her estate.

Most importantly, she kept her independence and peace of mind, without sacrificing the family home or displacing her adult children.

Why This Matters

Reverse mortgages aren’t just for emergencies or desperate situations. In this case, the loan created breathing room during an emotional and financially complex time — without forcing difficult decisions.

It gave our client space to grieve, room to plan, and the financial flexibility to live life on her terms.

If you know someone who is asset-rich but cash-flow poor — especially older Australians living on the land — a reverse mortgage might be the solution they’ve never considered.

*This case study is based on a real client scenario. Names and identifying details have been changed to protect privacy. The information is general in nature and does not constitute personal financial advice. Outcomes described are specific to this client’s circumstances and may not be typical. Please seek advice tailored to your individual situation before making financial decisions.