The Listen to Lawrence Letter: Selling a house in a trust and not putting the money back in the trust
March 16, 2022
Dear Clients and Friends:
A CAUTIONARY TALE
CLIENT QUESTION:
What happens if I put ½ of a house in a trust and after its sale, I never put the money back in the trust?
MY RESPONSE:
Please say it ain’t so! When the house (1/2 or whole) is sold in the trust, the money from the sale must stay in the name of the trust. Taking the money out of the trust destroys the effectiveness of the trust as an asset protection tool from Medicaid. If this really happened, we need to discuss the best way to start your five-year look back over again.
I hope this helps! Please forward this information to your friends and relatives to share these informative answers to some very commonly asked questions.
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Listen to Lawrence Letter, just have them email me at
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Let’s stay connected.
Stay safe!
Until next time,
peace, health and happiness,
Lawrence Eric Davidow