She does not have a computer and often calls me and several friends for info. That's fine if you want to know when to put out the hummingbird feeders this spring. (Wait til you see the birds!) Now she says she and her husband set up a revocable trust maybe 6-7 years ago and attorney wants to change it to irrevocable. Three of her friends are attorneys and they all say bad idea. Anyone else ever run into such a suggested change?
A Revocable trust leaves all your gathered funds in a Trust. You as the creating Trustor and Trustee have power to change it, withdraw from it, sell property from it, use it for your care.
The dangers of the IRREVOCABLE Trust is that while it keeps the government from getting your money, and makes you perhaps eligible for Medicaid at some point, it doesn't allow you to say "To heck with this grumby Medicaid facility; I want to go to that nice ALF down the road instead".
You need to fully understand Trusts before you play around with them.
This is not DIY. This is something you do with a GOOD ATTORNEY who will explain everything for you. Trust and Estate Attorney is the specialty.
My father in law went to a lawyer who recommended to have her draw up an irrevocable trust . My father in law listened to her reasoning which was
“ so the nursing home can’t get your money “. My father in law agreed to have her draw up the paperwork for this trust. The lawyer never told him that should he apply for Medicaid within 5 years , this trust is subject to the 5 year look back anyway in our state . She sold him a bill of goods for $6,000. He was very frail and already living in Assisted living when this lawyer met him and he died 2 years later. Any moron would have realized this man would most likely not live another 5 years . In my father in law’s situation a revocable trust would have been more appropriate if he was to do one at all .
We aren't attorneys so please don't come here for non-professional advice from a global forum of anonymous people with no accountability. Even if it is "free".
Extremely wealthy people who do not have to protect assets from nursing home thieving because they can afford to not end up in one, do Revocable Trusts so assets can pass to heirs without the need for probate. They also do this as a way to stay in total control of their family and heirs until the moment they die. Since the terms of a Revocable Trust can be changed easily, the weathy person with one can make their family dance to their tune.
An Irrevocable Trust is what people with assets that don't include the word 'billion' make to protect these assets from a nursing home or care facility. They are very difficult to change the terms of and in some states not at all.
An Irrevocable Trust is probably what yiur friend's looking for if they want to preserve potential inheritance for their loved ones.