The Listen to Lawrence Letter: Can I sell my house in an irrevocable trust?

READER QUESTION:

Thank you for giving me the opportunity to ask this question. I was thinking of setting up an Irrevocable Trust to protect my house for my children. My two adult children would be beneficiaries. Right now, they live close by, but they might relocate due to job transfers. In that case, I would like to move closer to their new location. Would I be able to sell my house, or would I be restricted by the Irrevocable Trust?

MY RESPONSE:

I understand your concern and hesitation. That word “irrevocable” is a scary one, and you want to make sure that you will not be locked into something that will not work for you in the future. But have no fear, these irrevocable Medicaid Trusts are more flexible than you think. One of the most important things for you to know is that trust assets can be changed at any time without incurring a new look-back or causing any harm to the Medicaid protection goals of the trust.

The bottom line is that the trustee can sell your house at any time (with your consent) and purchase another house for you anywhere else.

I look forward to discussing whether an Irrevocable Medicaid Trust is otherwise right for you.

I hope this helps.

And, if anyone you know would like to

receive this Listen to Lawrence Letter just

tell them to send their email address to info@davidowlaw.com and I’ll add them to the list!

As always, please send your questions in! If you are thinking about it, others are probably too, so my answers will no doubt help you and many others.

Let’s stay connected. Stay safe!