| What does irrevocability really mean? Read on:
CLIENT QUESTION:
Can we revoke our Medicaid irrevocable trust?
MY RESPONSE:
What part of irrevocable did you not understand? (sarcasm meant to be funny). All irrevocable trusts are irrevocable. But what does that really mean? It means you cannot revoke it on your own. HOWEVER, with the consent of all the beneficiaries, the trust can be revoked. Wait a minute. What if one of your kids says no? Don’t fret. If you have one or more uncooperative children then we have a remedy. We always put in these trusts that you have the right to change the trust beneficiaries among a class of people, for example, you could name one child or grandchild to be the sole beneficiary and then get their consent to revoke the trust. But understand, that you can not make any beneficiary revoke the trust and if none will consent, then the trust is indeed irrevocable because you cannot revoke it on your own.
Also understand, that if two people created the trust (i.e. a husband and wife) and one dies, then the trust can never be revoked, even with the consent of all the beneficiaries. |
