Irrevocable trust question

Discussion in 'General Discussion' started by cabbagegirl, Nov 24, 2013.

  1. cabbagegirl

    cabbagegirl Newbie

    Hello everyone,

    I have spent some time reading many past messages (going back 4 years) concerning irrevocable trusts and net worth. I'm confused still about what I should enter in Part X.

    our situation briefly:
    Two years ago my father put all his savings (200 K) in an irrevocable trust with me as trustee while my mother was dying of cancer. He is an 84-year-old Korean War vet with multiple health issues and very little awareness of managing his life without my mother. We now have a part-time caregiver coming in 20 hours/week managing his household, making some meals, driving to and coordinating with doctors, managing the extensive meds. I live out of state and go once/month to help out: cleaning, some doctor appointments, checking up on things, paying the caregiver, doing the taxes. He has cardiovascular disease, diabetes, incontinence, needs a cane and hearing aids. He lacks appetite, is forgetful, can't cook except for warming in the microwave, but has no signs of dementia (evaluation by neurologist spring 2013). He still drives locally (1-2 miles) and can walk about 1 mile.
    He is determined to stay in his own home, and as long as there is a caregiver there, it works.

    Except for the irrevocable trust, he has an IRA with 48K remaining. Income is Social Security of $1500/month which goes entirely to the in-home caregiver. He takes about $2300/month out of the IRA to meet the rest of the living expenses and Medicare part F, part D, rent, food, insurance, medical co-pays for all the drugs, Depends,
    OTC medicines and equipment. His living expenses exceed his income. His doctor readily completed the Physician Statement showing his need for this aid and assistance.

    I believe many other people are in the same boat when it comes to trusts etc. Could someone please clarify what to do?
    Thank you very much
    Cabbage girl
  2. vetadmin

    vetadmin Administrator Staff Member

    The bottom line here is that if the trust says it can be spent on his care and keep, then it is a VA asset and is countable.

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