MarketWatch: Reverse Mortgage to Help Adult Children?

Question: My parents are 83 and 88 years old and live in a home that is paid for in full. They are considering a reverse mortgage because we children need the funds now. Can you please advise us how to go about this, and the pros and cons?

Here are a few questions to start: Will our parents be taxed? Can they give funds to their children as a gift, and would we be taxed? How does a reverse mortgage affect getting Medicare later on with no equity? Or better said, how would this affect them if they need to go into a care facility?