I am trying to help my mom put a second home in a trust and I am not sure whether to use a revocable trust or an irrevocable trust. There are four children involved and one has bad credit. My mom is a widower.
3 Answers from Attorneys
The kind of trust to use depends on many factors, including planning goals, income and estate tax issues, Medicaid planning, current and future cash flow needs, and so on. The only way to answer your question is to sit down and look at the whole picture and ask your mom a number of questions.
Please feel free to contact me if I can be of assistance.
I agree with attorney Golden.
Without knowing how old your mother is, it can generally be said that you absolutely must speak with a lawyer before transferring the assets and property of a more senior individual. So many things can go wrong in the transfer of property into a trust that it just makes sense to do it right from the beginning.
If you would like to talk this through with an estate planning and elder law attorney, please feel free to call our office.
Both attorneys are correct. The issue is more complex than simply whether the Trust should revocable or irrevocable. There are issues involving medicaid as well as getting the permission of lender(s) if there is a mortgage on the property.
Your mother needs to sit with an attorney and determine what she wants to do with the home and why?
Please feel free to contact me to discuss your options without oblgations.