Creation of Trusts to qualify for A&A

Discussion in 'How to Apply Questions' started by craigcollins, Aug 4, 2014.

  1. craigcollins

    craigcollins Newbie

    My father is in a care home. My mother was referred to a person to help her qualify for A&A. My parents own a home, a car and have a nest egg of approx. $50,000 - their lifetime savings. The person to whom she was referred is now charging her $4000 to prepare an irrevocable trust into which the house is to be transferred, and another irrevocable trust into which the investments are to be transferred. Both trusts name my parents as trustors, trustees and beneficiaries. This makes no sense to me, but my mother is convinced that it is necessary. Is it necessary?
  2. vetadmin

    vetadmin Administrator Staff Member

    You need to put the BRAKES on this immediately!

    Need to know age, expenses, etc. Is Mom still independent or does she have services coming in. The house and the car do not count as assets, and 50K is well within a range depending on expenses that they would be allowed to have.

    This person is strictly looking out for their own financial interest.

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