Core Insights - The article discusses the considerations for selling a home in an irrevocable trust and the implications of downsizing, particularly in high-tax areas like Long Island [2][4]. Group 1: Financial Considerations - The couple has a combined monthly Social Security income of $7,000, with savings of $600,000 in a high-yield savings account earning 4% APR [1]. - The current home is valued at approximately $1.2 million, raising questions about the necessity of purchasing a new home of equal value if sold [2][4]. Group 2: Trust and Legal Implications - Selling a home in an irrevocable trust requires alignment among family members, particularly the grantors and trustees [4]. - The terms of the irrevocable trust will dictate the process and implications of selling the home, necessitating consultation with an estate attorney [7]. Group 3: Downsizing Options - Downsizing is common for retirees, especially those in large homes or expensive areas, and it is advisable to research potential new neighborhoods or housing types before selling [5]. - There are various housing options available for older residents, such as cooperatives and condos, which offer amenities that cater to their lifestyle needs [6]. Group 4: Tax Implications - If the couple has lived in the home as their primary residence for two of the last five years, they may qualify for a $500,000 exemption on the profit from the sale, which is $250,000 for single taxpayers [8].