Is Living Trust considered an asset?

[kjuno]

What is the name of your state? Tennessee
My mother lives in Tennessee. Her only income is Social Securtiy. She was told that she did not qualify for food stamps because she owns her home. If she puts her home in a Living Trust is it still considered an asset? She has willed the house to me and many years ago she deeded the property that my sister was to inherit to her so that she would build her home next door to her. Does my mother have to deed the house to me now to remove it from her list of assets? Since the house has become more than she can maintain and has developed problems (like rusted water pipes) that she cannot afford to have fixed, we are encouraging her to move into an apartment with rental assistance in our state (Wyoming) but again we fear that owning a home will prevent her from doing so. Any guidance would be appreciated. Thanks.

 

[divgradcurl]

If she puts her home in a Living Trust is it still considered an asset?

If the trust is a revocable trust, then yes. If the trust is an irrevocable trust, then probably not.

But the more important thing here is that, as noted in other threads, giving away assets or "spending down" assets to qualify for aid may be fraud, and can result in penalties, fines, and even jail. She need to talk with an attorney, preferably one experienced in medicare and estate planning, to determine how best to set up her assets.

Plus, the deed situation you have noted is unclear makes it unclear as to who owns what. You need to see a lawyer in order to avoid trouble down the line.

 

[kjuno]

Thanks for the insight

I appreciate your response. Certainly, the reason I am seeking advice is that I would in no way want to do something fraudulant. Although we have encouraged my mother to sell her property, she insists that it is my inheritance and wants it to stay in the family. The reason we had talked to our attorney about a living trust was because we thought we could would assist her by becoming legally responsible for the property taxes. Our attorney stated that he could not handle setting up the living trust because she was out of state. Bottom line is we are concerned about her quality of life and our discomfort with her remaining in the declining house is growing.