Legal Question in Wills and Trusts in California
Trust vs. Beneficiary
My parents have a living trust. After my mothers death, my father updated the trust to reflect their current wishes. Due to my fathers now ill health, I am his sole caretaker/provider and he has transferred the house out of thier trust and into my name. Due to his medical costs and needs he has also placed me as beneficiary to his IRAs and insurance policies. Does the trust need updated again or does my being beneficiary override the trust? I have one sibling very angry over the changes but I'm going into debt trying to keep up with the care he needs. His IRAs are not very big and may even be less then what his medical expenses will end up totaling. I will need those assets to pay off what I can of the debts I'm currently accruing for my father. Is there anything further my father and I need to do, to protect his wishes and to protect me financially? Thank you.
1 Answer from Attorneys
Re: Trust vs. Beneficiary
Well, you have made the classic mistake of transferring the house, an appreciated asset, during your father's lifetime. Totally unnecessary to protect the asset against Medicaid liens or debts to the estate.
The trust only applies to property in the trust at your father's death.
There are other steps you should take to protect against a post death lawsuit from you r sibling. There may well be a lawsuit alleging overreaching and undue influence. Someone with no interest in the estate should be brought in to talk to your father alone, without you being there, to confirm that he is not changing his estate plan under pressure from you, his principal caretaker, and to attest to the fact that he is compentent.
You have many issues here, and your lack of knowledge may well get you in trouble and cost you substantially in avoidable ways.
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