I originally wanted to include the ckg account in the trust but we wanted all names to be on the joint account in order to do that it could not be included under the umbrella of the living trust according the the law. So we opted in to creating a ckg account out side the trust. When the time comes close when my mom dies we well transfer balance into one of the other accounts that is under the umbrella of the trust. I am concerned about the ckg account being vulnerable in becoming probate at a later date.

I still get conflicting information on that the bank said because we have multiple names on that account we would not be affected but what they say and do are two different things. I do not want the government getting their hands on it in probate. When someone dies accounts become frozen especially retirement accounts takes months and months to get it released.

We have everything in a living trust set up already that is the only thing outside the trust but it was the only way that we could include my sisters name and me on the account to pay bills when my sister comes down to relieve me she has access to what ever the needs present to themselves.

Shur make sure the account is set up with Right of Survivor. This means that on anyones death the remaining owners get the account. When it gets close you might want to consider taking moms name off the account and leave just you and your sister.

If your mom has valuable personal assets like jewelry, silverware, or even furniture in the house you should have her do a statement that all of her personal assets are transferred to the trust. It's a safety measure. Last December I was talking to mom's lawyer about the wording of the trust and he agreed that it would be a good idea. He wrote up a one page statement and she signed it. You would be amazed how quickly you can get to $50,000 with things like a wedding and engagement ring, silverware and furniture. My mom had a 12 setting silver service that they bought in the 60s. It was stolen so we had to get a value. It was worth almost $20,000 now!! Better safe than sorry.

Here I am again with questions about the topic. In my situation, my parents set up a Living Trust. Obviously Mom is now sole Trustmaker and it reads that she can change her Trustee and make changes to the Trust.

My understanding is that we wont have probate if no heir takes this into court? All I am suppose to do is take a form to the County Assessor and return to bank. The time it takes to run this errand is the only that the bank is on hold to me. Otherwise it is paid to my on death.

Mom also keeps an acct that social security comes into. Outside the Liv. Trust. Just as well so they can take back whatever portion if needed. She otherwise pays house bills. Wont go bill pay but am hoping she may allow this.

You know, it clear that she knows all the words, can say how things are to be but can not restate in a manner that shows ME how to do it. I know, her brain is impaired.

So, I am off to look up the LIV TRUST laws to be sure I have my ducks in a row, well...not ducks because they get shot at often ...so lets just say get myself better prepared. :)

Thank you so much for this discussion.

P

PS...exhausted tis I

I guess I will have to pull out the trust book and see if assets in the house are included in the trust thanks for the heads up!,

Here's the problem with a trust

"There are problems with the trust, however. You do not have access to the money in the trust. At most, only the income that the money or property in the trust earns can be distributed to you. The trustee of your trust must not have any discretion to distribute trust principal to you; otherwise the principal will be considered a resource for Medicaid purposes."

The most common form of trust is setup for inheritance tax purposes. It allows a higher level of assets before you pay taxes. But unless you are talking $5 million or more this doesn't matter anymore.

Most people do not want to do the type of trust that would be protected from medicare. To protect from Medicare the benificiary of the trust cannot have access to the principle of the trust, only the income which gets factored into their income. So if the house and other assets are in a trust but they can be used for the benefit of your parent Medicare will consider this their asset and make them use that before they will cover costs.

Be very careful when reading trust documents. My dad's trust says mom gets the income but cannot touch the principle until she has nothing else. But if she had nothing else she can use that money so medicare would consider that her personal asset. Basically my parents trusts are useless regarding medicare.

I believe what works is an irrevokable trust (meaning they can't take it back) where your parent only gets the income from the trust. Of course if they need the principle of the trust to live on before then they would be stuck. This is why very few people will do this.

Tigg, you are spelling out what I am reading about. My Mom will be going to an event tonight taken by my closest human in this world!! Yeah for that.
So I will have 2 hours to look at the Trust better. May come back with
needing language interpretation.
Those of you sharing knowledge is serving many not just me in a huge way. So unbelievable.
I hope others will follow this who may be in my shoes. Appreciate this as I do with such honesty. I was in YIKES-VILLE to the Nth a few days ago.

PS. I know an Attorney is needed. However, stress can over load my mind and it is cost effective to do some homework before seeing her.
Especially since taking the summer off. :)

One question still sticks out after all I am reading. Studying I should say.
OK. The Liv Trust is revokable. ALL her assets are listed in this. Car, house and belongings. The house QC to me and all material goods mine.
Last item in the Trust. The annuity and required monthly distribution to a specific bank, also part of trust. Mom get pension there too.

Lets see if I get this part correct. Because she can still control the assets then Medicare can lien and collect from these if needed.
But not the real estate?( because of QC to me)

Also, two cars in this planning need to go. Yes a family member will receive. I am thinking of selling him for little. So at the time they are sold their Fair Market Value will be factored into what Medicare could collect?

I suppose there is no way to convert this to a Irrevocable Trust at this point? Mom has not been considered infirm so we could make this decision now. I think she will understand well enough. Not sure if she will like not having control is all. Wont trust me. But if I explain the medicare enough then she may see it.

Am I starting to get this information focused?

Yes you are correct. Because its revocable and she has control of it the trust assets are subject to Medicare limits. You could change that and then openly the income would be used for say a nursing home, but I believe the clock would start now. So if mom needed a nursing home in less than 7 years they could go after the trust assets.

I like the idea of selling the cars more. Then throw that money in the trust. And if you sell below blue book take lots of pictures of anything wrong so you can prove they weren't worth book value,

But I would still check the trust out with her lawyer. And remember you can't touch those assets so if mom needed assisted living you wouldn't be able to get to the money. Lots of factors to consider. How old is mom, how long do you think she Might live, do you think she can be cared for at home or is assisted living the way to go. And it's still just a guess about what is best,

Tigg2
Thank You!

Hugs
P