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
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?
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.
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Until next time,
peace, health and happiness,
Lawrence Eric Davidow