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Question:

I am trustee for a trust for my brother who is 68 years old. He and his wife currently live rent free in our deceased parents’ house. The house is in a nominee trust with the beneficiaries listed as the trust for my brother and a trust for myself. My brother’s trust is discretionary although I am instructed to make distributions to him by considering his circumstances. I would like eventually to sell the house and have them move into senior subsidized housing. There is currently a four-year waiting list for such housing in their town. Their income is from Social Security, part-time employment, and trust distributions. What are the income eligibility requirements in Massachusetts for senior housing? Would they be disqualified since there is a trust for his benefit?

Response:

I would recommend checking with the local housing authority on its income and asset limits because they can vary by type of subsidy. In addition, they may only look at these when a unit becomes available. So your brother and his wife may be able to get their names onto the list even if they wouldn’t qualify today, and have their application reviewed in four years when they get to the top of the list. By that point, they may have stopped their part-time employment and have a lower income that could allow them to qualify.

In terms of the trust, from what you describe the assets in the trust will not be counted in determining your brother and his wife’s eligibility for public housing. However, income is another story. In most cases, trust distributions are considered to be income eligibility purposes, as well as for determining the amount of rent charged the tenant, especially if they are regular recurring payments. One-time payments are not considered to be income.

If you’re brother became disabled before the age of 46 (as of 2026, 26 in 2025), you could support him by making distributions to an ABLE account that he could manage on his own.

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