Trusts & Estates Law/Trust: help with same
I am about to sell my house which has depreciated in value by $100,000 since 2005 and is now selling for $145,000 (seller's concession, $5,000 to help young buyers get loan). This house was my saving account, I purchased it for cash ($193,000) in 2003, never thinking it would EVER lose value in this manner and always thinking it would accrue in value. My daughter at age 23 took her life 2-1/2 years ago and I moved out of the house. It is now in contract and closing on November 7.
Question: I am retired, my social security is $837 a month and I have Medicaid Extra Help which I cannot afford to lose. About $120,000 is coming in my direction. It will be diverted through a private "revolving loan" but will essentially be "gifted" to me. How much money can I put into an account that is used to estimate my Medicaid qualification and my rent in a HUD assisted apartment? AND, most importantly: I want to protect the majority of this money from nursing home or other such outrageous crap and have a beneficiary. If I create an irrevocable trust, I will have to pay a trustee to dispense money to me that I will absolutely require to stay alive for so long as that may be (I am presently a very healthy 66). If I create a revocable trust (and I understand there are such that revert to irrevocable in case of my incapacity), then the money is in my social security number and is still "mine" and will disqualify me from Medicaid and cost me thousands every year in health insurance.
I have consulted two attorneys, neither of them seem to know what to do. Do you have any ideas?
Sorry for the delayed answer. All of your concerns are valid. If we had a little more time, we could implement a "best practice" strategy. But closing in a couple weeks. . .
Call me today.
The solution is more complex than I can credibly explain in this answer. But whether we can implement a best practice plan or have to work with the resulting loan, we can structure the solution so you can control the money, but you can't lose it to Medicare, nor have it affect your other subsidies.