Elder Law Answers
Can I Convert a Revocable Trust to an Irrevocable Trust When I Apply for Medicaid?
I recently had my living trust updated after 20 years. Now I regret that I didn't conve...
Read moreCan Property in an Irrevocable Trust Be Sold or Gifted Without Restarting the Medicaid Look-Back Period?
- September 9th, 2016
Q
My parents have an irrevocable trust that contains land, money, and real property. It was set up as part of Medicaid planning. If the trustees sell a part of the land, would it reset the five-year look-back period? Also, does this land have to sell at "market" value or can it sell to family at a discounted price? Finally, could this land simply be gifted without resetting the five-year look-back period?
A
To start off, you need to check with a local elder law attorney to be certain of the answers because different states interpret the rules differently and it is important to see the actual wording of the trust. That said, here are the probable answers: (1) The trust can sell the land, but the proceeds of the sale must remain in the trust. (2) If the trustees sell the land for less than its market value they may be violating their fiduciary duty to the trust beneficiaries. But if the beneficiaries approve of the sale, then the trustees could be protected from potential liability. (3) The land could be gifted if the trust permits distributions to the recipients in the proportions anticipated. This should not start a new five-year clock (but this might be the most important issue to confirm with a local elder law attorney). To find an attorney near you, go here: http://www.elderlawanswers.com/elder-law-attorneys.
For more about Medicaid and trusts, click here.
Local Elder Law Attorneys in Ashburn, VA
Meet Mindy Felinton
(301) *** ****
Learn more
Mindy Felinton
Felinton Elder Law & Estate Planning Centers
Mindy Felinton concentrates in the areas of Medicaid planning, Veterans' Benefits, asset protection, nursing home planning, elder law, wills, estate planning, trusts, living wills, powers of attorney, probate administration and trust administration and began her legal career 30 years ago as an Assistant State Attorney...
(301) *** ****
Tell us about your legal issue and we will put you in touch with Mindy Felinton.
Meet Ron Landsman
(240) *** ****
Learn more
Ron Landsman
Ron M. Landsman, P.A.
Ron M. Landsman has been practicing elder law since 1983, before it was known as elder law, originally with Landsman and Laster, Washington, D.C., then Landsman, Eakes and Laster, also in Arlington, VA, and since 1990 in his own practice in Montgomery County, Maryland. He has been among the most active members of the...
(240) *** ****
Tell us about your legal issue and we will put you in touch with Ron Landsman.
Meet Evan Farr
(703) *** ****
Learn more
Evan Farr
Farr Law Firm
In practice since 1987, Fairfax Attorney Evan Farr is widely recognized as one of the leading Elder Law, Estate Planning, and Specials Needs attorneys in Virginia and one of foremost experts in the Country in the field of Medicaid Asset Protection and related Trusts. Evan Farr has been quoted or cited as an expert by n...
(703) *** ****
Tell us about your legal issue and we will put you in touch with Evan Farr.
