asked

My mom has been in trust litigation for 3 years and is awaiting a judge's decision on whether she can take her house out of the trust to get a reverse mortgage. The contingent beneficiaries claim the house cannot be taken out because the trust is now irrevocable. However, my mom has a nonfiduciary power of appointment. If the judge does not allow the house to be taken out or imposes unacceptable restrictions, can she exercise her power of appointment to appoint the property to someone else either now or by will? The terms of the trust do not prevent this exercise. Also, if the house is taken out of the trust and becomes her personal property, can the court impose restrictions on her use of the reverse mortgage proceeds?

April 16th, 2023

Sign Up to View Answers

Create an account to view answers and interact with the community!