Hello,
My mother is considering nursing home preplanning by setting up a Medicaid Irrevocable Trust and putting the house into it along with a CD with some money in it.
Some concerns I have prior to getting this done are;
1. She gets a break on her house taxes each year in the form of an abatement as a widow of a retired military man. If she puts the house into an Irrevocable Trust will she still qualify for the yearly abatement or will she lose it because the house is in the trust?
2. Being over 65 and currently having the home in her name she qualifies for the current amount of $980 yearly "Circuit Breaker" credit. If she puts the house into an Irrevocable Trust will she still qualify for the "Circuit Breaker" refund or no?
Thanks for answering these questions.
Ownership of property in irrevocable trust
You may want your mom to discuss this issue with the attorney who drafts the trust. I do not work with trusts and have never dealt with this question. However, I can certainly see a potential issue because, with an irrevocable trust, the trustor (person who creates the trust) typically gives up ownership and control of the trust assets.