The Listen to Lawrence Letter: Who should be paying the house expenses?

READER QUESTION:

If I have my house in an Irrevocable trust (to shield from Medicaid) must I pay house expenses (Re: taxes, maintenance) from funds inside the trust or can I use funds that are outside the trust? Thanks.

MY RESPONSE:

In theory, we could design these trusts either way but we DO NOT! We specifically design these trusts so that you are PERSONALLY responsible

for all taxes, insurance, and maintenance bills on your home. We do this so that you will retain all of your property tax exemptions, including STAR, ENHANCED STAR, SENIOR, and VETERANS exemptions. The only way for you to keep these exemptions is if these are your personal bills. Therefore, the trust should not pay these bills as it would violate the terms of our trust.

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.

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