QUESTION
What should be done first, Trust for mother's house or placing her in Assisted Living?
Asked on Oct 08th, 2013 on Estate Planning - Michigan
More details to this question:
We are in the process of setting up a Trust to place my mother's house into. We are also in process of getting her placed in an assisted living community. Does it matter which we do first?
12 ANSWERS
Divorce Attorney serving Bingham Farms, MI
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Gottlieb & Goren, P.C.
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No, it does not matter.
Answered on Oct 09th, 2013 at 4:35 PM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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Probably not, but what is the point of the trust for her house? Be sure you are not "piece-mealing" her estate plan. If she does not have a will, you should have a general review of your mother's estate plan, preferably by a lawyer who is also familiar with long-term care and Medicaid planning.
Answered on Oct 09th, 2013 at 4:06 AM
William M Stoddard
Yes, if she is going into assisted living because her memory is failing, does she have the testimentary understanding to set up the trust. I'd get the trust set up first before having someone say she is now incompetent.
Answered on Oct 09th, 2013 at 3:57 AM
Criminal and General Civil Litigation Attorney serving Warsaw, IN
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Rockhill Pinnick LLP
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The first thing you should do is ask the lawyer preparing the trust what he/she thinks. That is what you are paying for.
Answered on Oct 09th, 2013 at 3:54 AM
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If she is or will be applying for Medicaid, you probably should not be funding a trust. Please speak with an elder law attorney experienced in these types matters. There is no simple answer. This information is only intended to give general information in response to an inquiry. It does not establish an attorney client relationship. This response is only based upon the limited facts presented and is merely intended to assist you in determining if you should contact an attorney to provide you with legal advice.
Answered on Oct 08th, 2013 at 2:55 PM
What you should do first is consult with an attorney specializing in Elder Law before you end doing something that will create harm to your Mother.
Answered on Oct 08th, 2013 at 2:26 PM
Thomas Edward Gates
It will not matter since there is a 5 year look back period and the house must be count as her asset when apply for assistance.
Answered on Oct 08th, 2013 at 2:25 PM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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General not unless you are going to attempt to have medicare pay for her care then there is a 5 year lookback.
Answered on Oct 08th, 2013 at 2:24 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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Yes. You need to meet with an elder law attorney to determine how best to proceed. If your mother's property is not handled correctly, you could lose the right to qualify for Medicaid, and you could also lose the opportunity to protect the house or your mother's other assets. A trust may not be a bad planning option, but placing the house in trust will render your mother ineligible for Medicaid benefits.
Answered on Oct 08th, 2013 at 2:18 PM
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No. A trust will only avoid probate, it has nothing to do with placing her in assisted living. If she is going to be receiving Medi-Cal benefits, keep in mind while the house is exempt, the asset can still be used for recovery of what was paid on her behalf from her estate after she passes, even if the house is in a trust. Also, make sure your mother has the legal capacity to execute the trust. Good luck.
Answered on Oct 08th, 2013 at 2:16 PM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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Trust first. Do not delay.
Answered on Oct 08th, 2013 at 2:08 PM
Trusts and Estates Attorney serving Troy, MI
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Barron, Rosenberg, Mayoras & Mayoras, P.C.
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Absolutely not. However as important as the Trust is the durable power of attorneys for health and financial decisions with long term care language is probably more important. Also, a trust may not be the answer as the home in the living trust is a countable asset for Medicaid if her health gets worse. The best solution may be a lady bird deed. Also, if your mother is a widow and her husband (your father) is a Veteran she may be entitled to $1,113 a month tax free for her care.
Answered on Oct 08th, 2013 at 2:02 PM