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Is using trust account money to buy elderly mother-in-law (that can't drive & has dementia) a new Jeep in her best interests?
Green Bay, WI
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Posted 2 months ago in Trusts
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87 yo MIL hasn't been able to drive for 10 yrs. Family kept her car for her "because she loves it". Now a niece is caring for her (for pay) & has requested $25K for a new Jeep because she says it's easier for my MIL to enter & get out of...a JEEP?!?! (Niece has had Jeeps twice before & loves them). She says she will drive her to FL 2x/yr, but MIL's health isn't good enough to ride, she must fly. MIL has dementia & isn't competent to make a contract, yet they say the car will be in her name (she won't comprehend). My husband & the other trustee agree on sending the money to them (niece is home visiting her parents & buying there). I think the girl should buy herself the Jeep, then should charge the trust for expenses when using to transport my MIL else it 's unethical. Am I wrong?
Answers (2)
R. S. Missimer
This attorney is licensed in Wisconsin.
Posted 2 months ago.
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I tend to agree with your feelings. The care giver doesn't have an ethics issue, the trustees do.
As a trustee you have to be satisfied for the use of the money (assuming that you have unlimited power to dispense). That is why you are a trustee. I would talk to an attorney before going out on that limb. 
Stephen C. Jones
This attorney is licensed in Illinois and 1 other state.
Posted about 1 month ago.
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Be very careful here. As the trustee you are obligated to act in the best interest of the beneficiaries. If a trustee fails to do so they may become personally liable for the actions they have taken. Many attorneys who have drafted trusts for clients will have them come back to them for advice when they want to make big expenditures or decisions regarding trust assets. Speaking to an attorney here would be a very good idea.
Another thing to consider is what kind of trust this may be. If this trust is a revocable trust then those assets may be considered to be available assets to pay for care. The purchase of the jeep could actually be part of a spenddown strategy to make your mother in law qualify for Medicaid. |
