Legal Question in Wills and Trusts in California

My sister (age 61) and I (age 67) are the sole and equal beneficiaries of our parents living trust. Our parents passed away several years ago. The family home, which is the only asset remaining in the trust, was sold in October 2010. I put the proceeds in trust. Prior to selling the home it sustained extensive fire damage. My sister was living in the home at the time and was rescued by fire fighters. She is currently living in an assisted care facility. She is disabled and receiving SSI and Medicaid. My wife and I live on a very modest fixed income, so we do not have the means to take care of my sister's subsistence and medical needs. I would like set up a third-party special needs trust for her and fund it with all of the proceeds currently in the family trust.

I am trustee of the family trust and have power of attorney. My sister is unable to handle her own finances, so I also have durable power of attorney for her.

My question is this: Can my sister legally give me her share of the trust so I can set up a third-party special needs trust for her and, if so, what legal device should we use to transfer the funds from her to me ?


Asked on 3/16/11, 6:56 pm

1 Answer from Attorneys
Aaron Feldman Feldman Law Group

I am a member of the Academy of Special Needs Planners. An attorney would need to review your parents' trust to determine whether a 3rd party SNT is available of whether it has to be a first party SNT instead. I would be happy to look at your sister's situation in greater detail. I provide free consultations. Please feel free to contact me.

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Answered on 3/17/11, 8:39 am


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