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

January 5, 2024
January 2, 2024 • Volume 5 Issue 204
Who should be paying the house expenses…read on…


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.


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.

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