Trusts & Estates Law/Irrevocable trust
Thank you for your time.
My friend, who is disabled, has been on SSI her entire adult life. To protect her home and belongings for state of California at her death she set up an Irrevocable trust at age 53.
I am the trustee of that trust. At the time she set up the Irrv. trust she intended and told the attorney that should I out live her she wanted me to be able to live in the home until my death at which time it passed to a single beneficiary. The attorney failed to put the clause giving me the right to live in the house in the trust.
The Beneficiary was a minor at the time and was to receive his inheritance at 3 different ages should we both be deceased. Those ages being 18-25-and 35. The beneficiary has since become a drug addict and is in and out of jail. There has been a major falling out with the family. My friend no longer wishes for this person to be the Beneficiary of the trust but of course has no actual say because it is irrevocable.
The beneficiary who is now 23 and his parents who are also druggies would never consent to a change in Beneficiary. They do not know that he is the Beneficiary. We are told that the only way to change the beneficiary is thru the court.
The one option we can see is a clause in the original Irrv. Trust giving me power to buy, sell, trade property in the trust. We are considering selling the property and vehicles in the trust to another trust for $1. and leaving the original Irrv. Trust in place.
If My friend out lives me, she wants to be able to live out her years at home. She requires 24/7 care ( which I provide) and Income from the Home would supplement the IHHS care if I were to pass first. Her disability is Physical and she is a very smart lady. She is 60 and 10 years my Junior. If I out live her she wants me to be able to live here and have full control of the estate property. Upon both of our passing the New Trust would remain perceptual with yearly % of profit distribution being made to a yet undecided group.
Is it better to do a new Irrv. Trust or LLC or ????
You need to sit down with an attorney in-person to discuss this. Internet Q/A cannot adequately address all the questions you will have.
Although I can say that selling real property for $1 is probably an imprudent maneuver given your fiduciary responsibilities as trustee.