Its mortgage cash, free money they never have to pay back.  Its handled after they pass. They can use it also to buy other properties LIKE an equity line of credit.  They can ALSO Pay it off if they choose.  Its really an excellent deal, just make sure all the "kids" know how it works.  The family can choose to pay off the debt as well if they wish to keep the home in the end.    I  do not know the charges or fees related to a pay off, so I would ask about that.