Is there a way to get a house deed out of the trust? What if it is an irrevocable Trust? Nj.com’s recent article entitled “Can I dissolve an irrevocable trust to get my house out?” says that prior to finalizing legal documents, it is important to know the purpose and consequences of the plan.
An experienced estate planning attorney will tell you there are a variety of trust types that are used to achieve different objectives.
There are revocable trusts that can be created to avoid probate, and others trusts placed in a will to provide for minor children or loved ones with special needs.
Irrevocable trusts are often created to shield assets, including the home, in the event long-term nursing care is required.
An irrevocable Trust in Florida is a trust agreement among a settlor, trustee, and beneficiaries that cannot be revoked or amended. So basically, once the trust is made and finished, it cannot be changed. Whether you are the trustmaker yourself, the settlor, the trustee, or the beneficiary. You may not amend or change anything in your trust once it is completed and notarized. You may only change an irrevocable trust in unusual circumstances.
Conveying assets to an irrevocable trust typically starts the five-year “look back” period for Medicaid purposes, if the trust is restricted from using the assets for, or returning assets to, the individual who created the trust (known as the “grantor”).
When you transfer assets to a trust, control of the assets is given to another person (the ‘trustee”).
This arrangement may protect assets in the event long-term care is required. However it comes with the risk that the trustee may not always act how the grantor intended.
For instance, the grantor can’t independently sell the house owned by the trust or compel the trustee to purchase a replacement residence, which may cause a conflict between the grantor and trustee. Because the trust is irrevocable, it could be difficult and expensive to unwind.
In light of this, it’s important to designate a trustee who will work with and honor the wishes of the grantor.
An experienced estate planning attorney retained for estate and asset planning should provide clear, understandable and thoughtful advice, so the client has the information needed to make an informed decision how to proceed.
If you would like to discuss your legacy options with an estate planning attorney in Jupiter, Palm Beach Gardens, or Naples, Florida, schedule a complimentary call with Edward J. Welch at Welch Law, PLLC. Remember, at Welch Law, WE WANT TO DRAFT YOUR LEGACY!
Reference: nj.com (April 6, 2021) “Can I dissolve an irrevocable trust to get my house out?”