QUESTION
Do I have to get out and can she sell it before grandma passes even if when the money isn't needed?
Asked on Jan 24th, 2016 on Estate Planning - Utah
More details to this question:
I am 1 of 4 total people named in my grandparents trust. Grandma is the only one still alive and she now lives in an assisted living facility. She was put there by my sister and the POA of this family’s trust. Grandma has enough money (cold hard cash) to live approximately 6 or 7 years. There’s no immediate need to sell the house named in the estate. I live in her home and have for 10 plus years now as I was a part time care giver. The POA now tells me buy it or get out cause she wants to sell it.
1 ANSWER
Estate Planning Attorney serving Provo, UT
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Randy M. Lish, Attorney at Law
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Your Trustee needs to be careful and speak with a medicaid planning attorney before she sells the house. The consequences may be severe. As long as the grandmother has an intent to return to the home, the home is an exempt asset, and Medicaid cannot take the home. If your grandmother moves back into the home before she dies, even if only for 1 day, it wipes out the lien Medicaid has on the home. If your sister sells the home, the proceeds are not exempt, and must be spent down before Medicaid will begin helping with any nursing home expenses. If your sister still insists on selling the home, she has that right, and you will have to move out. As Trustee, she can manage the assets any way she wants, so long as the trust assets are used for your grandmother.
Answered on Feb 22nd, 2016 at 9:39 AM