Los Angeles Federal Credit Union v. Ahmad CA2/8

BACKGROUND

In late 2016, Muhammad, who was in his late 80’s, became seriously ill with an infection and was hospitalized for two to three weeks, 10 days of which were in an intensive care unit. Soon after his recovery, in March 2017, after stating that his health was not good, Muhammad gave the Ahmads $229,000 from a revocable trust for their use and the use of their children. This left no money in the trust account. Muhammad also transferred three pieces of real property which he owned into an irrevocable trust, with the Ahmads as co-trustees. The Ahmads were not present when Muhammad met with the lawyer to create

2 the irrevocable trust and they had no input into its terms.1 After these transfers were complete, Muhammad was left with a monthly income of $5,780 from Social Security and his City of Los Angeles pension. Muhammad had lived on this income for at least 10 years. The transfers of the real estate to the trust increased the amount of disposable income available to Muhammad, as the yearly costs of the two rental properties exceeded their rental income. Around 2016, Muhammad hired Tina Hao to be his caregiver. He initially paid her $2,000 a month. At some point, he…