Q: Can you cancel an irreversible trust

A: Often the whole point of an irrevocable trust is to avoid having to sell the home to pay for care, thus ensuring that your children will at least inherit the home if nothing else. Your care is paid for out of savings and when that runs out then Medicaid picks up the tab. When you pass your designated heirs inherit the house and the house is NOT then exposed to Medicaid estate recovery as it otherwise would have been. Your attorney should have explained this to you. Do not dissolve this valuable protection without talking to an attorney who specializes in Medicaid preplanning.

A: While an irrevocable trust is designed to be permanent, there are some situations where modifications or even termination might be possible under California law. Your situation - where the beneficiary agrees to the change and it serves the purpose of providing necessary care - could potentially qualify.

You would need to petition the court to modify or terminate the trust, citing specific reasons like changed circumstances or the consent of all interested parties. California Probate Code Section 15403 specifically allows for termination when all beneficiaries consent and the court determines that continuance of the trust is not necessary to achieve any material purpose.

Your best course of action would be to consult with an estate planning attorney who can review your specific trust document and circumstances. They can help determine if your situation meets the legal requirements for modification or termination, and guide you through the court petition process if appropriate. Given that your daughter supports the change and it's for the purpose of necessary care, you may have a compelling case to present to the court.