Surviving Spouse wants to sell.
CLIENT QUESTION:
Many years ago we put our house into an irrevocable Medicaid trust with our two daughters as trustees. The five-year lookback is over. Last year my husband died. I may want to move to a smaller place. What happens to the house? Must my daughters sell it? Can they rent it or keep it? What happens to any profits? Can they gift me money for a new place?
MY RESPONSE:
The trustees cannot sell the house without your written consent. However, if you (both or the surviving spouse) consent, the trustees can sell the house. If they do not want to, remember that you have the right to replace them at any time, including disinheriting them from the trust. That should make them more cooperative, but it rarely comes to that. Once they sell it, the money will go into the trust. Thereafter, the trustees can purchase another home for you (so you do not need the money yourself to buy the new home). Also remember, the trustees can NEVER gift you money from the trust…if you can get it, Medicaid can get it. |