Legal Question in Wills and Trusts in Michigan

Father passed 10/12/2009 with a living trust. Real estate in trust to be divided equally between my sister and myself. Sister on Gov. Aid, so we had father's living trust amended to create a Special needs trust for sister to inherit real estate. Question: sister wants to know if she can deny her inheritance and have her share of real estate go to me? Her real estate has not been distributed yet from my father's trust into her special needs trust.


Asked on 6/14/11, 5:33 am

1 Answer from Attorneys
Don Rosenberg Barron, Rosenberg, Mayoras & Mayoras, P. C.

Absolutely not. If your sister is receiving SSI and Medicaid the disclaimer of an inheritance is considered a divestment. Any divestment is penalized by Social Security anit-fraud statute. This penalizes a person 1 month of benefits for every $674 in value. Your sister is much better off in having the inheritance placed into a special needs trust for her benefit. It is fortunate that your father established a special needs trust before his demise. If not then you would have to seek court protection.

For more information check out my website www.thecenterforspecialneedsplanning.com

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Answered on 6/14/11, 5:44 pm


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