Amending an irrevocable trust

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Remedy98
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Joined: Tue Sep 12, 2017 10:53 pm

Amending an irrevocable trust

Post by Remedy98 » Tue Sep 12, 2017 10:57 pm

Can you amend an irrevocable trust if the original successor trustee is deceased and the grantor is still alive but incapacitated? After the initially stated successor trustee died an amendment was performed on the irrevocable trust, would this amendment hold up since this is an irrevocable trust? If you cant amend the trust what can you do to add or change the successor trustee? Also can financial institutions touch assets in the trust while the grantor is alive to cover medical costs? Following the passing of the grantor, can financial institutions seek payment from the assets with the irrevocable trust?

Background: The grantor is currently hospitalized with an illness that will require her to have long term care. The grantor does not have much assets, but previously inherited 50% of a residential property that is Co-owned by her sibling. She previously created an irrevocable trust that she was the beneficiary and settlor. She put her close friend as the successor trustee, he has since died. After he died the grantor made an amendment to the trust stating her sibling would be the successor trustee. She currently does not qualify for long term care benefits from the state due to her income from her pension, social security and rent income from the property (which is not enough to pay for the monthly expenses of long term care). Now the family is uncertain about what options they have since no one in the family is listed as the successor trustee in the original trust, but only on the amendment. And the sibling that is a co-owner of the property is concerned about what to do next.

Many thanks!

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