Posted on: 13th Feb, 2009 09:40 am
Greetings,
My husband and I both live in California and receive Medi-Cal assistance. He is in his 80's and lives in a skilled nursing home now. I live alone in our only residence home (only asset)which is currently in a revocable living trust. We would like to protect our home from medi-cal asset recovery. He is doing a Grant Deed to deed the home to me via a Irrevocable Living Trust. As Grantor of that Irrevocable Trust, I am naming my son as Trustee and beneficiary. My questions are:
1) As soon as I complete the Irrevocable Trust, who owns the house? Do I still own it, or my son? In other words, when does the asset transfer actually happen?
2) Am I still responsibility to pay property tax?
3) Do I need to state in the Irrevocable Trust that I maintain life estate for myself in order to have medi-Cal asset protection?
4) If I need to move into a skilled nursing home, would medi-Cal make me pay down 30 months first?
Please provide any guidance.
Thanks.
My husband and I both live in California and receive Medi-Cal assistance. He is in his 80's and lives in a skilled nursing home now. I live alone in our only residence home (only asset)which is currently in a revocable living trust. We would like to protect our home from medi-cal asset recovery. He is doing a Grant Deed to deed the home to me via a Irrevocable Living Trust. As Grantor of that Irrevocable Trust, I am naming my son as Trustee and beneficiary. My questions are:
1) As soon as I complete the Irrevocable Trust, who owns the house? Do I still own it, or my son? In other words, when does the asset transfer actually happen?
2) Am I still responsibility to pay property tax?
3) Do I need to state in the Irrevocable Trust that I maintain life estate for myself in order to have medi-Cal asset protection?
4) If I need to move into a skilled nursing home, would medi-Cal make me pay down 30 months first?
Please provide any guidance.
Thanks.
Hi huskies!
Welcome to forums!
In an irrevocable trust, the grantor gives away the ownership and control of property. It, thus, becomes a separate taxable entity and pays tax on its accumulated income. The grantor is no longer liable to pay the taxes on the income generated by the assets. While the tax rules will vary between jurisdictions but in most of the cases the grantor can't receive these benefits if he or she is the trustee of the trust. Yes, I think you should mention the life estate clause in the Irrevocable trust. While creating the trust, do take the help of an attorney. He/she will be the best person to guide you in this regard.
Sussane
Welcome to forums!
In an irrevocable trust, the grantor gives away the ownership and control of property. It, thus, becomes a separate taxable entity and pays tax on its accumulated income. The grantor is no longer liable to pay the taxes on the income generated by the assets. While the tax rules will vary between jurisdictions but in most of the cases the grantor can't receive these benefits if he or she is the trustee of the trust. Yes, I think you should mention the life estate clause in the Irrevocable trust. While creating the trust, do take the help of an attorney. He/she will be the best person to guide you in this regard.
Sussane