Hi,
I've been reading through the threads on this forum for a while and I think this is my first post.
I have a unique situation, where a 74-year old client is the trustee to two IRREVOCABLE trusts, in which her two nephews, both of whom are special needs, are the beneficiaries.
One nephew has already passed away, and they are keeping the money in the trust, with the intention that if her other nephew should need the money they would transfer it over.
Now at the moment the money for the trust is sitting in a MMA earning little interest through Bank of America or some B&M bank. She's got a little under $100K for the living nephew's trust.
Now the living nephew is 56 years old, and he lives a free life where he just roams around and comes home whenever he wants to get some money (typically $500/month).
Now with a $100K, the annuity pays roughly $500/month (before taxes), and I'm pushing the cash refund option, where if anything happens to him, she would get a refund for the remaining balance. If he lives longer than the $100K, we will continue making monthly payments until he passes away.
First her argument was that it would perform better in a MMA, earning an APY of 1.50% and I couldn't get her to understand that anything after 17 years would be pure profit. If anyone has any suggestions, please let me know.
Her second argument was that she was thinking about putting him in a nursing home, but they can't do it without his consent. She's been trying to get him admitted for 5 years, and she has a handshake agreement with a home that if he should ever change his mind they would accept him, and she was told he would qualify for Medicaid. Should he be admitted, her intention is to split the trust between herself and her 4 siblings. My question is, in an irrevocable trust, can she legally split the money between herself and her siblings just because the beneficiary is in a nursing home?
Any and all help would be much appreciated!
I've been reading through the threads on this forum for a while and I think this is my first post.
I have a unique situation, where a 74-year old client is the trustee to two IRREVOCABLE trusts, in which her two nephews, both of whom are special needs, are the beneficiaries.
One nephew has already passed away, and they are keeping the money in the trust, with the intention that if her other nephew should need the money they would transfer it over.
Now at the moment the money for the trust is sitting in a MMA earning little interest through Bank of America or some B&M bank. She's got a little under $100K for the living nephew's trust.
Now the living nephew is 56 years old, and he lives a free life where he just roams around and comes home whenever he wants to get some money (typically $500/month).
Now with a $100K, the annuity pays roughly $500/month (before taxes), and I'm pushing the cash refund option, where if anything happens to him, she would get a refund for the remaining balance. If he lives longer than the $100K, we will continue making monthly payments until he passes away.
First her argument was that it would perform better in a MMA, earning an APY of 1.50% and I couldn't get her to understand that anything after 17 years would be pure profit. If anyone has any suggestions, please let me know.
Her second argument was that she was thinking about putting him in a nursing home, but they can't do it without his consent. She's been trying to get him admitted for 5 years, and she has a handshake agreement with a home that if he should ever change his mind they would accept him, and she was told he would qualify for Medicaid. Should he be admitted, her intention is to split the trust between herself and her 4 siblings. My question is, in an irrevocable trust, can she legally split the money between herself and her siblings just because the beneficiary is in a nursing home?
Any and all help would be much appreciated!