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The elder sister of mother in law has will read and moves the $ into a trust in my wifes name to pay for mother in laws nursing home care and is insisting we have her admitted at once. We have her and are not going to admit. What happens to the $?

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Who's the Executrix/Personal Representative of the Will? Is it the woman who created the Trust, and if so, was that her idea or a condition in the Will?

As to what happens to the funds, I think the first issue is whether or not the Trust was created pursuant to the Will. And how the money will be handled would also be addressed in the Trust. So she needs to provide you with a copy of the Trust, especially if it commits you to certain actions.

However, it sounds as if she's unaware that you're caring for MIL, so she's not really up to date on that care situation. I think you have some rough times ahead of you if she is in fact PR of the Will.

And by the way, who's the Trustee of the Trust, a Living Trust, I assume?
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If MIL is on public assistance she will need to go off when receiving this amt of money. I agree u need to find out how the Trust was able to be written up. Does MIL have Dementia or Alz?
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It depends on how and why the trust was set up. The sister may or may not have done the right thing in setting up the trust. It may have been a condition of the will.
Is your MIL in poor health? What does she want to do about the funds? It sounds like the aunt thinks your MIL would be better off in a facility. $200K will pay for a limited amount of care and then what? Since MIL was an heir, she should be able to see the will to see what the bequest was. Is your wife your MIL's POA? You probably need an attorney to sort this out. Let us know what you find out.
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