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Isn't a special needs trust only for individuals age 65 & under? In our question, I specified he was 68.
Dear XXXXX - could you also address from the original question what is the best way to ensure that he stays on the property until the end of his life? I mentioned we had a buyer who will offer him a life estate at no charge. As far as protecting him to stay on the property and not getting in the way of any government benefits, what would you recommend - life estate, lease, etc. The buyer also wants owner-financing. Are there any situations where someone can kick my brother off the property?
The life estate interest is probably the best option. He should retain an ownership interest in the property because that will not cause him benefits issues. All benefit programs will exclude ownership of his residence. If he were to rent back then the trust could not pay the rental fee and that would have to come out of his monthly check based on the rules for a pooled trust.
The owner financing could cause issues if it is not done correctly. The owner of the note and payee should be the trust for your brother's share. If the note is not owed by the trust then it is a countable asset and causes him to be ineligible for benefits.
One last thing - you have been wonderful helping me. With the life estate, are there any situations where my brother could be kicked off the property, such as buyer not paying his real estate or income taxes, bankruptcy, etc?
Does your first sentence mean if the property is legally subdivided by hiring a surveyor? We were trying to do this as a life estate.
Is my brother responsible for the maintenance & property taxes if the buyer puts it in the sales agreement that the BUYER will be responsible?
If the buyer ends up not paying his real estate taxes one year, can my brother get kicked off the property?
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