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Richard
Richard, Attorney
Category: Estate Law
Satisfied Customers: 55452
Experience:  29 years of experience practicing law, including tax and estate planning.
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My finance has an irrevocable trust children, He has llife

Customer Question

My finance has an irrevocable trust for his children, He has llife long residency. He currently wants to move out of his home officially ( he has moved in but not officially) with me and we get married. His children are to live at his house for cheap rent ( which the daughter will not pay )in my opinion from her history of paying any rent to her dad) she also takes money from her dad. , the daughter has a baby and husband and fully intends to have more children. The plan is that his kids stay there for there for 1.5 years and then we sell my house and move back in to his house. ( Not sure that is going to happen if his kids do not leave ) I am very doubtful that the daughter will move out in the future. Her and her husband work part time but have a low income and are on medical state assistance. Tom has never said no to his children, Oh and their spouses live there too. Tom is not a rich man and works 6 full days a week to suppoer his household.
First question HE has lifetime residency in the house, By him moving out is that still true? Does that jeopardize his ever moving back in?
Second question HE seems to tell me that this irrevocable trust can be broken if he changes his executer ( his son ) to sell the home. Is this possible? He said this is
some kind of loophole to get out of an irrevocable trust.
I have a will but my house ( which is worth more ) is not in a trust .I also have 2 children which will get the proceeds from the home which has great equity.
Third question Should Tom move back into his home? Not sure there will be any money left for our retirement after his daughter needs money for her kids. I have a renter and do not need toms income to survive. Is this a valid concern for me?
Thank you very much On part of me wants to head for the hills Get out of this mess. LOL Help
Submitted: 1 year ago.
Category: Estate Law
Expert:  Richard replied 1 year ago.

Good morning. My name is ***** ***** I look forward to helping you.

First, the life estate issue. Having reserved a life estate in the home, that continues for the term of his life whether or not he is living there. As long as he is alive he controls who occupies the house. He has the right to live there, to rent out the property, or allow someone to live there for free. Second, the issue with the irrevocable trust. Once a trust is irrevocable, it can only be broken or terminated with a court order which is difficult to obtain. The grantor and all beneficiaries (including potential contingent beneficiaries) must agree and there must be a justifiable reason in the court's view. Depending on the terms of the trust, it's possible the house could be sold or distributed from the trust, but only if the trust agreement as written provides for such.

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