Legal Question in Wills and Trusts in Illinois

Mothers house is in trust to myself and brother Richard. Can Illinois Dept of Healthcare and Family Services place a lien against it? States since she has been in a nursing home for more then 120 days assume cannot pay back monies. Says homestead and non-homestead property can have a lien placed in the amount of the medical assistance paid out. Am I wrong to think a trust protects from liens being placed on property by anyone?


Asked on 11/21/11, 11:00 am

2 Answers from Attorneys

Sanford M. Martin Sanford M. Martin, P.A.

A living or revocable trust does not avoid liens placed on real or other property by a govt agency related to obligations for medicaid assistance. You may demand explanations of the charges and any application of homestead or other exemptions under her medicaid terms, but such liens are common.

Living trusts do not avoid such liens.

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Answered on 11/21/11, 11:40 am
Virginia Prihoda Law Offices of Virginia Prihoda

In a nutshell, yes I think you are wrong. However, when push comes to shove there are nuances to property held in a land trust or in a revocable living trust, I don't think it's so clear that the lien attaches unless the trustee is served with a notice of the lien--the law in this area is not so well established that it's certain. Also, it matters when you and your brother acquire(d) your interest in the property in the trust (upon mom's death, or sooner). However, the government certainly cannot be expected to have a less secure position with respect to collecting its debt than any private creditor, and the general rule of thumb is that revocable trusts are not generally creditor protection devices.

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Answered on 11/21/11, 11:56 am


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