| Getting money back from the trust…read on:
READER QUESTION:
If a married couple creates an irrevocable Medicaid trust and one dies, the trust cannot be revoked…is my understanding correct?
So, if the surviving spouse needs money, can the property in the trust be sold, the proceeds remaining within the trust, and the trustees withdraw some and give it to the surviving spouse to pay expenses? Thank you!
MY RESPONSE:
My readers will not be surprised by the answers here. Yes, if the married couple and all of the trust beneficiaries agree to revoke the irrevocable trust, it can be revoked. However, once one of the grantors dies, the trust cannot be revoked. And NO! …the trustee can never write a check to or for the benefit of either grantor.
The trustee can pay money out to one or more trust beneficiaries. Once the beneficiary has the money, it is their money and they can do whatever they want with it. They can go on a cruise or make a gift to their parent(s). |
