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an 89 year old female and her husband who is now deceased signed a quit claim deed for their home to their 2 children. the property was put into a living trust. now the homeowner wishes to give her property to a different family member.

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Your question is not clear. Who put the property in a living trust? Who's living trust is it? Who is the current homeowner? I'll try to help if you can be a bit more detailed.
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my husband's grandma and grandpa, which are the owners of this property, filled out (with an attorney) the quit claim deed conveying ownership to their 2 children. the second page of the document lists the legal description of the property and the last line reads "reserving unto grantors a life estate in all of the above described real estate." grandpa passed away in 2008 and grandma now lives with me and my husband. grandma has now decided she wants to give the house and property to her nephew, not her children. can she file a new quit claim deed or if not does she have any other options. my husband, her grandson, is her power of attorney for property.
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To clarify the language, the property was not transferred into a living trust, as you initially indicated in your question. Instead, they transferred a "remainder interest" in the house to their children, retaining a "life estate." Such a transfer is not revocable unless the children deed their interest back to their parents. So, at the present time, your husband's grandma can only give away (by deed) what she currently owns, i.e., an interest in the house for the rest of her life. Any deed she signs cannot change the interest of her two children. Upon grandma's death, regardless of what deed she now signs, the entire interest in the property will be vested in the names of her two children. In other words, they will own it outright.
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If a property is in a living trust with 3 children can the property be transferred to only one of them? And how is Medicaid eligibility impacted if the home is in a living trust? ie Can the government delay eligibility with the home in the trust?
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A discussion of living trusts and Medicaid should have its own topic. Can you repost your question as a new topic? Thanks.
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I have reposted the question. Thank you.
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