QUESTION
irrevocable trust and power of attorney
Asked on May 05th, 2016 on Trusts and Estates - California
More details to this question:
Mom and Dad's (co-trustors) original trust was set up up as revocable until his death, at which time it became irrevocable. Trust states surviving spouse may make changes, etc., but if unwilling or incapacitated, then successor trustee (in this case also power of attorney) can step in to make those decisions. I am trying to get a line of credit on mom's home so we can continue to pay for her care (retirement funds are depleted), but bank says since trust is irrevocable we cannot. Doesn't make much sense in light of the above instructions. Is there anything I can do?
2 ANSWERS
3 Awards
There are virtually no lenders who will lend on property which is in an irrevocable trust.
You should probably consult with a local attorney. Depending on what powers you were given in the trust, involvement and cooperation of your siblings, and on your mother's health status, there are various options. It sounds like you might also want to do some analysis of her ability to get long-term Medi-Cal if her health requires nursing home care.
Answered on May 14th, 2016 at 11:18 PM
Estate Litigation Attorney serving Redlands, CA
at
Price Law Firm, APC
Update Your Profile
As successor trusteee, you have the authority to get a loan against the house. Every lender has underwriters whos are bound by their policies. You can choose a different lender or transfer the house to your individual name in order to get financing, and then transfer it back to the trust.
Answered on May 05th, 2016 at 6:35 PM