The first thing we need to know is whether your parent is competent to establish a trust, and sign a deed transferring the real estate into ownership of the Trustee.
It sounds like your primary motive is protecting your parent from exploitation. A trust would be an ideal instrument to shield from predators. But if your parent's competence has already slipped away, setting up a trust becomes problematic. It might be possible to take some protective steps, using a Power of Attorney, if your parent had the foresight to establish your authority in a POA document.
Your next step should be to talk with an elder law and estate planning attorney in your state, who can explain the real estate, trust, and Medicaid planning issues that affect your parent.
K. Gabriel Heiser, an Attorney, author and Medicaid asset protection expert has written a book, and many articles on Medicaid planning and trusts. Here is one of his articles on "4 Key Things to Know about Trusts and Medicaid Planning":
Well, first of all they have to own the house free and clear, no liens. Next you want an attorney to establish an irrevocable Life Trust naming them as life tenants. The con: this will disqualify them for Medicaid for five years. After the five year mark, if they need Medicaid, they will be OK.
I encourage you to talk with an elder care lawyer in their state of residence. Each state has its own peculiarities with Medicaid if that should become an issue in the future (I never expected my dad to have to apply for Mcaid, but we're in the middle of this process). The lawyer will also be able to help you with any potential problems with inheritances or other legal issues that could occur now or later. Most EC lawyers offer a free consult.
I don't know how other states work, but my family and my self-used a good estate planning lawyer. We set up an irrevocable trust, we did living wills. I came from a rather large family. When my mother died her trust was easy to implement, with the exception of her home which she had willed to all the children. We had to wait 6 months for probate, my brother had sold his home and by law had to rent the house until his new home was completed. In this case, our family lawyer was a very valuable asset. The only person in my family that gave us any trouble was my brother. I put a stop to his bickering. Otherwise, a good estate planning lawyer is the best way to go.
First of all, if she is with you, how are these "friends" going to have access to her? A trust for real estate is good when there are multiple siblings involved. Do you have MPOA? DPOA? Dementia is not "caused" by age. She has to be competent to sign legal documents to sign over a house.
It sounds like your primary motive is protecting your parent from exploitation. A trust would be an ideal instrument to shield from predators. But if your parent's competence has already slipped away, setting up a trust becomes problematic. It might be possible to take some protective steps, using a Power of Attorney, if your parent had the foresight to establish your authority in a POA document.
Your next step should be to talk with an elder law and estate planning attorney in your state, who can explain the real estate, trust, and Medicaid planning issues that affect your parent.
K. Gabriel Heiser, an Attorney, author and Medicaid asset protection expert has written a book, and many articles on Medicaid planning and trusts. Here is one of his articles on "4 Key Things to Know about Trusts and Medicaid Planning":
https://www.agingcare.com/articles/trusts-and-medicaid-planning-175509.htm