As my mother in law got older, we went to an attorney and set up a living trust. i.e. A trust that is set up using her social security number, for which, I am the trustee.
For the last 3 years, she's been in a memory care facility, and I've transferred funds out to cover the cost.
It was written with the intent of keeping her irresponsible daughter (my sister-in-law) from having access to a windfall. I'll distribute 5%/yr, and at my discretion, handle 'emergencies'. Even though my wife is entitled to money, she won't request anything. Fortunately, the sister-in-law knows she is awful with money, and always thought my handling it was the best course. No resentment, the exact opposite.
The question - my Mother-in-law is in her last days now, sleeping 20+ hrs a day, and not eating. When she passes, what changes do I need to make via the Trust? As mentioned, it's currently using her SS#. Do I need to change this? I imagine I do, but am not sure of the process.
We have an irrevocable trust for my daughter, which was set up with its own tax ID, and I file a return for it, basically info-only, as all income is distributed each year. This situation is new to me.