Legal Question in Wills and Trusts in California

Re: Limits to having a Living Trust

Sorry to hear that your mother's condition is fading.

In answer to your question, it would depend on the terms of the trust. For example, is it irrevocable? Does the trustee have the option or a requirement to sell assets?

Additionally, if she is receiving state funds for the assisted living there may be additional considerations.

Our firm has over 25 years experience in estate planning. If you would like one of our attorneys to review the trust and give you an opinion, please feel free to contact me at my office at 626-578-0708 or through our firm's web site at www.No-Probate.com.

Scott

Re: Limits to having a Living Trust

I'm not sure what you mean by the statement "to exempt funds from being used from the value of her home?" If you are asking whether she has to use her home to pay for her care, the answer generally is yes, but the home is considered an exempt asset for medi-cal purposes as long as there is an intent to return to it. This means that as long as she wants to return, medi-cal should be prevented from forcing a sale to pay for her care. After her death, however, medi-cal would have a lien on the value of her home which may have to be paid before her heirs receive anything. If she is trying to preserve the home for her heirs, she may be able to accomplish this but she needs to speak with a medi-cal planning specialist.

Re: Limits to having a Living Trust

If you're asking whether the living trust protects her from reimbursement for Medi-Cal, the answer is probably not. Giving the house directly to her children may not be a good idea now either, as that could cause her to be ineligible for benefits. She should speak with an attorney experienced in Medi-Cal issues.