Legal Question in Wills and Trusts in Florida

I'm not sure that I understand what you mean by segregating the trust funds. As far as the house, depending on what you are trying to accomplish, you can leave it in or out of the trust. For a free consultation, please contact my office at 904-576-2581 or email me at [email protected].

We assume that your inquiry relates to a revocable or living trust. Based on the described facts, there are no disadvantages to transferring the residence to the trust; in fact, there may be advantages. For further counsel, you should discuss the specific trust and related facts with an experienced attorney to discuss legal options and benefits.

If the property is in your name, then it is not part of the trust.

I think you need to consult with an attorney to resolve some issues that have been created. It may not be set up the way you think it is, and the way the family wants it to be.

From your fact situation I am not sure who or what you are trying to protect or whom you are tying to benefit. However, be very careful how the re- transfer of the house will effect the Medicaid prohibition and disqualification of your father from continuing to receive the same - Holding a home in a revocable living trust is a prohibition of Medicaid rights; you had best ask qualified legal counsel who specializes in Elder Law or at least convey it back to a "ladybird" deed so that your parent holds it in their individual name even though the trust could be used to pay the upkeep at that time. The Lady Bird deed could have it pass either into the trust upon parent's death, or directly to the heirs avoiding the trust and probate.

Due to the fact that the home is same value as when originally conveyed there would be no benefit in re conveying to get an income tax break since there would be no available "step up" in tax basis upon an eventual sale. Also for any capital gain tax break to be taken the transfer to the parent would have to be more than 1 years prior to their death. You would not recover the past realty taxes and upkeep you have expended on the same. Only if the home would again qualify as the possessed homestead of your parent would there be any protection from the parent's creditors upon their eventual death, but this certainly would not overide inherent Medicaid dangers set forth above, since those loses would be extensive the longer the parent would remain alive after qualification.