My mother and father created a living trust basically to cover their home in Florida, there are no other assets. My father passed in 2013. My mother has not been well lately and has moved from Florida to Oklahoma to live with me and my family. They had a reverse mortgage on the home and after my father passed she sold the home back to the bank who in turn has sold the home. She moved to Oklahoma to live with me for health reasons. Does selling the home break the trust by itself or does she still have to go to the bank that handles the trust to break/cancel it personally. I also need to know if she can give me a medical and financial power of attorney without breaking the trust, basically a full power of attorney.
The terms of the Trust instrument will most likely control. Your mother may still have rights to amend or even revoke the Trust, if necessary, though if its only asset has been sold, it may be an empty vessel. The proceeds of the sale of the house, if held by the Trust, may be distributed to the beneficiaries, if the Trust instrument allows. You should have it reviewed by an experienced trust and estate planning attorney.
Your mother can appoint you or others as her attorney-in-fact under a Durable Power of Attorney for healthcare or financial matters or both if she is still of sound mind and competent to make such decisions. The Trust wouldn't control her right to do that. You should have an experienced lawyer review the Trust documents regarding ongoing matters and to assist you and your mother with drafting Durable powers of attorney. Many offer free initial consultations. Best of luck.
My comments here are offered for general information only, not as legal advice on any specific situation nor an interpretation of any particular law, and my comments are not offered as, nor intended to create, nor do they create, an attorney-client relationship.
If the home was the only asset in the living trust and there are no other assets included, such as bank accounts, investments, mineral interests, personal effects, etc, then the trust is probably just pieces of paper with no legal effect now, but your mother should have an estate planning attorney review the trust to be sure. She can probably revoke the trust if she has the mental capacity to do so, if the terms of the trust allow. Also, if she has sufficient mental capacity, she can do a Durable Power of Attorney and appoint you as her agent, known as an attorney-in-fact. This will not be controlled or prevented by the Trust. However, a successor Trustee named in the Trust , and likely not an attorney-in-fact, would be able to administer the Trust.
This is not legal advice. There is no established attorney/client relationship between us. Talk an attorney licensed in your state for formal legal advice on this matter.
If there are no assets remaining in the trust, then nothing further needs to be done. It has effectively been terminated. As to your mother giving you a medical and financial power of attorney, that has nothing to do with the trust and she can do that at any time. If previously she has given someone else powers of attorney, she may want to revoke them and notify that person and anyone else to whom copies of the earliest versions were provided.
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