My Dad died a few months back and my Mom is very ill. My parents owned their house jointly and when my Dad died my Mom owns the house indivi...

Question

My Dad died a few months back and my Mom is very ill. My parents owned their house jointly and when my Dad died my Mom owns the house individually. My parents have whats called a revocable trust. I recently meet with an attorney and he said that if my mom wanted to she could transfer the home into the trust that was created in 1996. He said we could put whats called a life estate into the deed so that she can live there for the rest of her life. Both of my parents were the creaters and trustees of the trust. The lawyer said that it would avoid the probate court if we did that. Is that correct?

Answer

I'm sorry for your loss and that your Mother is not well. All that you have been told is correct.

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My condolences for your loss and my sympathy for your mother's illness. The attorney is correct, this will avoid including the home in the probate estate. One thing you might want to check on is who is the successor trustee to your mother.

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My question is whether your mother is going to need MassHealth to pay for the cost of long-term care. If she does, any property put into a revocable trust would be a countable asset. Setting up a life estate would be a disqualifying transfer.

Do yourself a favor and get a second opinion from a qualified elder law attorney.

Answer

The strategies you mentioned are all viable, but Attorney Golden is absolutely correct that you need to choose the right course of action for your specific situation. Good luck!