Elder Law Minute – Owning Farm or Rental Properties Through a Trust

In this Elder Law Minute, Wes Coulson discusses how he handles issues that may arise when putting real estate into a trust.


Hi! I’m Wes Coulson from Coulson Elder Law, proudly serving clients throughout the St. Louis metropolitan area and beyond. I’d like to welcome you to our Elder Law and Estate Planning Minute. We do these to help educate people, give them some little tips, and especially to let them know the questions they need to ask, things that they’ve maybe not thought of. Our thought on that is that we can help you best if you realize the things that you need help and that we can help you with. So I hope you enjoy. Thanks!

In a couple of previous videos, I talked to you about why I think it’s a bad idea to own rental property, or farm property, as you age and might have a need for nursing home care and to apply for Medicaid. Those assets are just a bad mix to Medicaid eligibility. So, I want to talk a little bit today about what that’s going to look like if you put those types of property into a trust.

First of all, it’s getting them into a trust; we use a particular type of trust for real estate that, without getting into technical tax stuff, is made so that it is intended to preserve as to a resident’s capital gains tax exemption and as to other property if they’re not sold until after the person dies, preserving something called “Step-up in Basis”. That’s big because it just measures the taxable gain between the time somebody dies and the time it’s sold, rather than what could be years and years before the time they bought it and the time that it’s sold after they die.

So getting it in is deeds that get it into a trust. So, a fairly simple process. ONce there, trusts can manage property, can sell property, can buy other property; you can pretty much do the same with them inside of a trust as you could otherwise. Trusts can collect income, can distribute the income out to beneficiaries. So, essentially, we have a lot of flexibility within trusts that enable us to deal with anything that you might be thinking of as a concern, that would come to mind if you’re thinking about putting real estate into a trust. Thanks!

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Coulson Elder Law is dedicated to providing families in the St. Louis area with their Elder Law needs. Our practice areas include Asset Preservation Planning, Veterans Benefits, Medicaid Eligibility, Alzheimer’s Planning, Special Needs Planning, Estate Planning and more. We understand the financial challenges you may face as you and your loved ones grow older. At Coulson Elder Law, our clients’ well-being is our number one priority. For immediate help, call (877)995-6876 or Contact Us and we will get in touch as soon as possible.