created for the intentions of caring for the person and is being investicated as adult financial abuse. There is only 1 beneficiary and the trust states to take care of the beneficary for his lifetime. The trustee is also telling the beneficiary that a special needs trust is being set up (he is disabled-legally blind), that he will be responsible to pay utilities and she is planning to sell the home.
You appear to have several questions mixed up which makes it hard to respond.
First of all, if an irrevocable trust was set up by a Grantor properly before the Grantor's death (as opposed to an irrevocable trust created due to the death of the Grantor), then the money of the cannot be used to pay a debt of the Grantor. This is because in the former case, the trust property is not the property of the Grantor, and thus is not subject to the Grantor's death.
However, if the trust was created by the Grantor to transfer property when the Grantor already had the debt, and the transfer of the property caused the Grantor to no longer have sufficient assets to pay the debt, then the transfer into the trust could be attacked as a transfer to defraud creditors, and a court might order the trust to return the money so that the debt can be paid.
If the debt itself was created illegally or was the result of elder financial abuse, that is a separate question that can only be resolved through the court system.
Finally, your last sentence does not appear to be a question at all, so I am unclear what the purpose of the sentence is. If you are asking if a trustee of a special needs trust has the authority to sell a home in the trust, the answer is likely to be "yes." If the trustee is planning to sell the home, that suggest that there is not sufficient other money in the trust to maintain the home (such as paying a mortgage, taxes, insurance, etc) However, without more information, I cannot respond any further.
Michael Raymond DaymudeLitigation LawyerSherman Oaks, CA ·
I urge the beneficiary of the special needs trust to contact an attorney to review the facts and the terms of trust and any other applicable testamentary documents, such as a Will. The beneficiary needs advice and counsel specific to the situation -- general legal advice is inappropriate and likely to mislead. Good luck.
Eric Jerome GoldTrusts AttorneyCalabasas, CACA licensed ·
Based on your statement, you have muddled a few questions together. In this general forum, you will not get a detailed clear response on these facts. You should gather your information and schedule a consultation with a local trust attorney for a fact specific review of your situation.