Revocable Trust

[Green Ace]

Jurisdiction

Arizona

Hello,

I would like to start off by saying thank you to all the attorneys and other professionals for helping out in this forum, I do not take it for granted.

I am in the middle of a difficult situation, and could really use some advice. My grandmother (who is in her 90s) created a revocable trust about ten years ago in Arizona.

Due to her declining health, we moved her back to Tennessee to be with family. The trust states that when she passes, her house is to be sold immediately. It states her two daughters (one is my mother, who will be the trustee when my grandmother passes) will get X amount of money, and the grandchildren will get a much smaller amount. If there is anything left over, give it to a certain charity. The total amount of money to be distributed added up to what the house was valued at ten years ago. Here we are ten years later, and the house has doubled in price.

Here is where the problem lies. My grandmother's health has declined, so we had to put her in a home. The home cost almost 10k per month. My mom is going through her savings rapidly, and will run out of money soon.

Once that happens, I will have to take a mortgage out on my house (and possibly cash out retirement) in order to continue paying for her care. I want my grandmother to live a long time, and I don't want to put her in a government assisted home.

The other beneficiary's do not want to get involved, neither financially, or to help out in general. In fact, they do not even visit my grandmother. I am all for honoring my grandmothers wishes, and in favor of giving to charity. However, my mom (and eventually me) are going to end up spending all of our money taking care of my grandmother.

This doesn't seem right to me. We have seen a couple of attorneys, but they do not feel my grandmother's mind is sound enough to amend the trust. I know you guys have not seen the document, but do we have any options? It isn't fair that my mom and I are possibly going to go through all of our money, and the other family members (and charity) get to reap the benefits. Any advice would be greatly appreciated.

PS I don't want to come off sounding greedy. I hope my post did not give that impression. I am just worried that I am going to lose everything I have worked so hard for.

 

[Zigner]

Hello,

I would like to start off by saying thank you to all the attorneys and other professionals for helping out in this forum, I do not take it for granted.

I am in the middle of a difficult situation, and could really use some advice. My grandmother (who is in her 90s) created a revocable trust about ten years ago in Arizona.

Due to her declining health, we moved her back to Tennessee to be with family. The trust states that when she passes, her house is to be sold immediately. It states her two daughters (one is my mother) will get X amount of money, and the grandchildren will get a smaller amount. If there is anything left over, give it to a certain charity. The total amount of money to be distributed added up to what the house was valued at ten years ago. Here we are ten years later, and the house has doubled in price.

Here is where the problem lies. My grandmother's health has declined, so we had to put her in a home. The home cost almost 10k per month. My mom is going through her savings rapidly, and will run out of money soon.

Once that happens, I will have to take a mortgage out on my house (and possibly cash out retirement) in order to continue paying for her care. I want my grandmother to live a long time, and I don't want to put her in a government assisted home.

The other beneficiary's do not want to get involved, neither financially, or to help out with family. In fact, they do not even visit my grandmother. I am all for honoring my grandmothers wishes, and in favor of giving to charity. However, my mom (and eventually me) are going to end up spending all of our money taking care of my grandmother.

This doesn't seem right to me. We have seen a couple of attorneys, but they do not feel my grandmother's mind is sound enough to amend the trust. I know you guys have not seen the document, but do we have any options? It isn't fair that my mom and I are possibly going to go through all of our money, and the other family members (and charity) get to reap the benefits. Any advice would be greatly appreciated.

PS I don't want to come off sounding greedy. I hope my post didn't give that impression. I am just worried that I am going to lose everything that I have worked so hard for.

I am not trying to be insensitive to your situation and I am only speaking from the legal aspect, not the emotional aspect.

You have made a choice to care for your grandmother, while the other family members you have mentioned have made a different choice. Neither choice is more or less valid than the other. If you do not wish to lose your money (due to it being "unfair"), then you may need to alter your behavior.

 

[Green Ace]

I am not trying to be insensitive to your situation and I am only speaking from the legal aspect, not the emotional aspect.

You have made a choice to care for your grandmother, while the other family members you have mentioned have made a different choice. Neither choice is more or less valid than the other. If you do not wish to lose your money (due to it being "unfair"), then you may need to alter your behavior.

Thank you for the reply. I guess you guys can lock this thread up now. For the record, I am still going to mortgage my house and withdraw my retirement to take care of my grandmother.

 

[Zigner]

Thank you for the reply. I guess you guys can lock this thread up now. For the record, I am still going to mortgage my house and withdraw my retirement to take care of my grandmother.

I wish you and your grandmother, as well as the rest of your family, the best during this trying time for you.

 

[army judge]

I don't want to come off sounding greedy. I hope my post did not give that impression. I am just worried that I am going to lose everything I have worked so hard for.

You didn't appear greedy to me.

The trust is revocable.

It might be time for you, mom, and granny to have a chat about her continuing care.

You and mom need to open your kimonos, financially speaking.

There might be a way for granny to revise the trust to see to it she has excellent medical care and living conditions.

The social worker at her care center might also be helpful.

Your family is one of millions who cross this treacherous bridge.

Where there is a will, you'll ALWAYS discover or invent a way.

I wish your granny a longer, happy life.

Get things cooking and you'll see your way to provide a safe, loving, caring living environment until she's called home.

God bless.

 

[zddoodah]

This doesn't seem right to me.

Well...we all have choices to make, but so far, you haven't raised any legal issue.

We have seen a couple of attorneys, but they do not feel my grandmother's mind is sound enough to amend the trust.

Ok. Most trusts of the sort you've described provide that the successor trustee will become the trustee once the settlor (maker of the trust) dies or is no longer competent. Therefore, your mother should be able to begin acting as trustee (although it would probably wise to have a written medical opinion first).

Also, just because your grandmother's house is in a trust doesn't mean she can't sell it. Of course, if she lacks the mental capacity to amend the trust, then she may lack the capacity to enter into a contract to sell the home.

I know you guys have not seen the document, but do we have any options?

Well...legally, this doesn't concern you. As you apparently recognize, your mother's options depend on what the trust instrument says.

Any advice would be greatly appreciated.

Your mother should consult with a good attorney who handles trust matters. If the consultation warrants doing so, she should retain that attorney's services.

 

[adjusterjack]

Thank you for the reply. I guess you guys can lock this thread up now. For the record, I am still going to mortgage my house and withdraw my retirement to take care of my grandmother.

There's another alternative. You and your Mom stop spending your money and put Grandma on Medicaid.

 

[Green Ace]

Thank you for the replies, I really appreciate it. I should mention my mom has a POA over my grandmother. If we sell the house while my grandmother is still alive, don't we still have to do what the trust instructs? Do I have more rights as a beneficiary, versus if I was not listed in the trust? Lastly, isn't Medicaid a government funded home? Thanks again for your feedback.

 

[Zigner]

Thank you for the replies, I really appreciate it. I should mention my mom has a POA over my grandmother. If we sell the house while my grandmother is still alive, don't we still have to do what the trust instructs? Do I have more rights as a beneficiary, versus if I was not listed in the trust? Lastly, isn't Medicaid a government funded home? Thanks again for your feedback.

Depending on the exact nature of the POA, it may not be valid if your grandmother is mentally incapacitated.

 

[zddoodah]

my mom has a POA over my grandmother.

That is a very inaccurate way of looking at a POA. A POA is a document by which one person (the principal) authorizes another person (the agent or attorney-in-fact) to deal with third persons on behalf of the principal. The agent has no power "over" the principal, and the agent owes the principal fiduciary duties (which means, among other things, the agent is prohibited from putting his/her personal interests ahead of the principal's interests.

If we sell the house while my grandmother is still alive, don't we still have to do what the trust instructs?

There is no "we" here. If your mother is going to act as though she has become the trustee because of your grandmother's incapacity, then she is duty bound to act only as permitted by the trust instrument. As I mentioned in my prior post, your mother should consult with a good attorney who handles trust matters and, if the consultation warrants doing so, she should retain that attorney's services.

Do I have more rights as a beneficiary, versus if I was not listed in the trust?

My guess is that the trust provides that, while your grandmother is alive, she is the ONLY beneficiary and that you are only a contingent beneficiary. If that's correct, then you have no rights as a beneficiary until your grandmother dies.

isn't Medicaid a government funded home?

No. Medicaid is a federal and state program that helps with healthcare costs for some people with limited income and resources.