Anyone have experience with a revocable trust that has been set up by an elder care attorney?

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Which upon the death of the first spouses is or her assets will put into a probate will that spew cities that they be placed in a special needs trust for the remaining spouse and then upon their demise revert to a regular trust to be divided among their children

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One additional point to consider: A special needs trust set up with the assets of the first spouse to die will only be exempted by Medicaid if it is inside a WILL, not a revocable trust. This is a quirk in the federal law that makes little sense, but nonetheless is true!
However, as others have pointed out, if Medicaid is not ever going to be an issue, then having the special needs trust inside a living/revocable trust of the first spouse to die, for the benefit of the surviving spouse, is a standard planning device.
I've drafted hundreds of wills, revocable, and irrevocable trusts over the years and include a very detailed discussion of what trusts to use and how to use them, in my book How to Protect Your Family's Assets from Devastating Nursing Home Costs: Medicaid Secrets (www.MedicaidSecrets.com). You may find the trust chapter helpful.
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We saw an elder lawyer who set up trusts knowing my parents and the county and state rules. There was enough running around when mom died that having already done the financials was a blessing. Pre-planning took much of the pressure off during a time of grief and adjustment.
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The problem as I see it is the "revocable" status, which Medicaid will go after. See an elder law attorney about how to insulate the assets from MERP.
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Can't the spouse be a trustee on the trust or the successor trustee in case of death?
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Greeneydmom - the laws related to Trusts - who can - cannot be the trustee - how protected the dollars are - the look back - changed a few years ago. My folks made me the trustee of their trust about 8 years ago. Any dollars that were in the trust at that time are protected. Any dollars that have been in the irrevocable trust less that 5 years are not protected from the Medicaid look back should nursing home care be needed.
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GOOD ADVICE:The problem is the "revocable" status, which Medicaid will go after. See an elder law attorney about how to insulate the assets from MERP.

And spend the money to set up estate documents for all of you, POA's DPOA's, HealthCare proxies, WILLs, HIPAA releases so you are not locked out from getting information, See an elder law person who understands medicaid etc and not just preservation of assets
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Patty - is Medicaid even in this equation? If they have a good amount of assets, perhaps LTC insurance, a family who is used to caregivers or service providers, or doing caregiving, then Medicaid may never be a factor in all this. Not everyone has to go to Medicaid. If that more sounds like you all, then the plan the atty set up sounds good.

But if you have concerns, Perhaps do a realistic check on what the asset base is to see if there will be the money for private pay for care from the trust. If trust is low to mid6, there will be the $ for care for the average NH stay of 3 years imho. But if the trust has 100K that won't make more than a year if your lucky. Also ask about what is "feeding" the trust. The trust needs income to live (a trust is its own entity so needs a source of income) so what is that coming from and how is it performing? You want to speak with the FA the atty works with to go over this.

Also perhaps ask if the trust is planned to de-fund. Sometimes for special needs trusts this is done so the trust defunds about the time they hit 66 so Medicare & medicaid can start paying. good luck.
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Not knowing the exact situation - best to consult elder lawyer.

Seems to me if it is a joint trust (but one of the co-owners of the trust is or is becoming incapacitated and unable to handle their affairs)

Then upon the death of the competent spouse - a successor trustee should be named (I chose a professional fiduciary) and the trust would continue for the benefit of the remaining spouse.

Specifying that if any funds remain at the time of that spouse's death that
the children - charities named - or whoever - shall receive the funds and under what conditions.

If Medicaid will be needed, I don't know of any way to protect funds from state if there is only the remaining spouse. Likely would have to spend down those funds to Medicaid level before they would pay.
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I am POA in effect assisting the principal who is in the early stage of dementia
to buy groceries, do banking in her presence. The problems I face is that the attorney doesn't allow the principal to liquidate assets including stocks and investments. The attorney allegedly instructs the financial advisors and securities broker to hold cashing out of securities despite our demand. Does Elder law abide such financial transactions?
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Elder law would apply if the attorney is a court-appointed Conservator. I assume you are POA for the person and not the property. It sounds as if there is a Trust which distributes only interest and dividends. Is this correct?
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