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Yes. Trusts don’t protect assets from Medicaid. If the elder has assets, they need to be used to pay for their long term care.
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The exact type of Trust will determine IF it can be counted as a resource available to the Medicaid applicant or estate recovery.
If it’s revocable, it’s a resource.
Irrevocable is stickier and lots of factors as to whether it’s a resource or outside of Medicaid application or Estate Recovery by Medicaid.
Testamentary are sticky too. The wording in the will is important as to if it’s outside of any claims against the estate.
I’d suggest you clearly speak with the atty or law firm who did the Trust as to how it is or isn’t a factor for Medicaid.
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Your question is general in scope, but you need specific answers. If you have an existing Trust document, you can get specific answers from an Elder Law Attorney in your state who understands Medicaid regulations.

There are Medicaid regulations that protect people who fund Trusts, and the Beneficiaries who benefit from Trust distributions.

For example: a nursing home resident's transfers to an Irrevocable Trust for a disabled child would not be countable by Medicaid, if a Payback Clause is written into the Trust. You can't be sure of what you have until you consult with an Elder Law Attorney in your state.

If you are planning for the future, an Irrevocable Trust that complies with case law and regulations in your state can be established and funded in advance. As long as you can wait out the Lookback Period (5 years) before applying for Medicaid, the existence of the Trust fund won't affect eligibility.

Whether planning for future eligibility or a current crisis, talking with an Elder Law Attorney will benefit you and your family.
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