How do I arrange for sale of property with the ability to live there without using a reverse mortgage? What are the standard approaches?

Two potential approaches are: 1.  a sale and leaseback (more common in the commercial realm, for tax reasons, but feasible even outside the commercial context); or  2. sale of the property while reserving a life estate. Life estates are valid in Colorado and, in recent years, have gained a new popularity and acceptance as an estate planning vehicle for the elderly. Life estates may be created by deed or by will, with either a direct grant or devise, or by reservation. Any language that expresses the intent of the grantor/testator will suffice. Please note the price received for the property will more than likely be reduced to reflect that the new owner will not have full rights to the property until the life estate holder passes. With regard to your other question, in terms of protection from default during the rental period (in the event of a sale and leaseback), the best protection is to sufficiently evaluate the credit of the buyer and, if necessary, obtain guarantees or other assurances to reduce the likelihood of default. There are no inherent limitations in terms of shifting control of various aspects relating to the property; however, it's important to include provisions allowing for intervention or termination in the event the relevant matters are not handled as specified. Please note this response is general in nature and is not legal advice. No attorney client relationship is formed by it.  Furthermore, the response does not represent the opinions or views of LexisNexis or its affiliated companies. I hope this information is helpful. Kind regards,   Cyrus Rajabi