Legal Question in Wills and Trusts in Utah
Rest Homes
When my grandmother went to a rest home, we had to prove she had no assets in order to have the State or Medicare pay the bill. We put the home in my aunts name and divided up all the assets between her children. My parents have a Trust that was written 10 years ago. It is our family trust with dad as executor. Though I don't want them in a rest home, if dad dies first, it may be necessary to put mom in a home. That of course, would be a last resort. We would first try some in-home health care but If we do have to put mom in a home, do we have to take her name off the Trust or is the Trust subject to this at all? The main thing my parents are worried about is giving us an inheritance instead of giving it all to the state to pay for their stay in a rest home. I agree with that as well. They worked hard for a lot of years to provide an inheritance for us. I would hate to give it all to the state.
Thank you.
1 Answer from Attorneys
Re: Rest Homes
Your parents probably have what is known as a 'living trust' or a revocable trust. If they want to preserver assets, one technique is to make the trust an irrevocable trust and have all major assets in that trust. The difference is that the irrevocable trust has a trustee that is not one of your parents. Your parents have no direct right of control over the assets, which are directed by the new trustee. After 3 years an irrevocable trust is hard to penetrate; but prior to the 3 years it can be invaded under certain conditions.