| Medicaid trusts and borrowing from a bank?
CLIENT QUESTION:
Good afternoon and a Happy New Year, Lawrence
You set up an irrevocable Medicaid trust for us. Our house is one of the assets in the trust with my daughters as the trustees. Can one of them take out a home equity loan on the house? If so, would she be responsible for repayment? Would that in any way disrupt the trust?
As always, thank you for your advice.
MY RESPONSE:
I am not aware of any bank that will issue a home equity loan on a house in an irrevocable Medicaid trust. I have seen “some” banks give fixed mortgages and reverse mortgages, and if that is what is needed, it can be done in a way that would not disrupt the trust. I can introduce you to the right party to help you.
I hope this helps!
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Stay safe! |
