4 years ago when my father died my mother went to an attorney and drew up her will with a trust for her five daughters. She's 93 now and we've gotten through four of the five years for the look back. She's in great health so, provided she lives another couple of years, she will have completed the 5 years for the look back by next year. She owns her own home but she lives alone. If she should choose to move into a facility, will the trust be safe after the 5th year? She knows of a place she'd like to go, a very nice, little more upper middle class kind of place. But she won't go until she knows the trust is safe and it can't be taken. Her house is tied up in a reverse mortgage but there's money on top of what she owes because the house has appreciated in value. A facility would take whatever is above what the bank is owed. Does anybody know how this works? She's waiting the one year. She doesn't want her daughters to lose the trust. It's all legal with the attorney but she only did it 4 years ago.
I’m not clear on whether or not the house is part of the trust . If her house and all her money are in the trust , how does Mom expect to get into this upper middle class facility ?
The nicer facilities typically want to be paid from private funds for quite a while before going on Medicaid . And if this is an assisted living facility Medicaid may not pay at all depending on what state Mom lives in . Many states only pay for SNF ( skilled nursing facility ). She would have to qualify medically SNF to go there . You can’t just go to SNF because she had no money to pay for assisted living .
If the house is not part of the trust she uses the proceeds ( after paying off the reverse mortgage ) to pay for her care .
I don't know if this is a real question but I can tell you that having a RM on a house that is supposedly in a trust that only happened 4 years ago, is a WAVING RED FLAG.
I think you are all going to be a bit surprised when the facts of this chitshow come out. Sorry, but I have zero tolerance for people that want the "upper middle class" version of anything on someone else's dime. Entitlement issues.