Can annuities be put into a trust to qualify for Medicaid?

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My mother-in-law has two small annuities. She was told by a lawyer that she will not qualify for Medicaid because of them - can she put them into a trust? Can Annuities be put into a Miller Trust or a Qualified Income Trust?

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Irrevocable trust protects if 5 yrs. Cost us $4500. We no longer own who is in it our 4 kids are trustees. Look back is 5 years for Medicaid I think 3 for VA now. No probate. Some investments you pay taxes on to move them & IRA'S cannot be moved. Could you buy a new car to transport your mom w her $20000. I believe any money spent is to help your mom, bars, ramp etc.
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Old Bob 1936 has it right. Your mother in law can get Medicaid for her husband by being named the "community spouse". She will have use of the assets until she dies or they are all used up. If she dies and still has a lot of assets, the Govt can come after her estate for money, they call it estate recovery. But her spouse will have gotten the treatment/care he needed and that is what is important. If she goes to the DHS in your state, the staff there can explain all these requirements to her. Her assets can be placed in a Miller Trust, and the DHS has the forms to fill out. Be sure you or someone else goes with her because it's a lot of "government speak" and terms you and she will have never heard before and will need explained. But it will be worth it in the end. Be aware, this whole process can take months to get completed.
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All financial assets and income will be reviewed by Medicaid. They look back about 5 years. The only way I can think of is to sell the annuities, and wait five years to apply. Otherwise, apply now and see if they will offset it.
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First, get a good elder care attorney. It may cost several thousand, but it saves you that much in a few months time. I just went through the process with both my mother, then a year later, my stepdad. You are not allowed to keep any annuities for the person needing Medicaid. Prepaid funerals are safe also. They can't touch those. They can, however, take cash if you are saving it with intentions of a funeral.
Bottom line, if your Dad needs Medicaid, attorney helps you to turn assets over to your mother, but when she becomes in need for Medicaid, the process with an elder care attorney starts with her. I got a discount with the second parent, on attorney's fees. I could not have gotten through this without the attorney, and my parents would have lost in the long run.
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care4rita had good advice. This is my understanding, too.
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We were told by an attorney the same thing for my brother's 401K proceeds that we pulled out to pay for his long-term care. We set up a Living Trust and paid the attorney about $1000 for the trouble. Whenever I applied for Medicaid for my brother, however, they would not accept it and it disqualified him from Medicaid. In essence, the trust was useless. I was the trustee so no matters of handing over control. Fortunately, the funds lasted long enough to take care of his needs.
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It is my understanding that once you are receiving payments on annuities they are not assets. My mom has an annuity that pays her for life. There is no cash value. It only counts as income not an asset. She has another one that had a 15 year guarantee but 15 years have passed.
Check the fine print on your annuities. You are usually turning over your assets to the annuity. That is why they are so profitable for those who sell them. In my mom's case, however her principle was paid back to her several years ago.
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No. Assets are assets. The only way that would have worked is if all of her assets were put into a family members name at least five years prior to needing Medicaid. A real catch 22. You can put assets in her name and someone else's and 50% will not be touchable by the government.
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There is something I am considering here. Since the annuities are being drawn from yearly, they are in pay-out mode. Retirement IRAs and annuities are not countable when it comes to Medicaid if they are in pay-out mode. They are still assets, but won't be counted when figuring if someone qualifies as long as the bank balance does not exceed the max allowed during any month. She would have to be careful so a lump paid in a year doesn't put them over the maximum. I would talk to the Medicaid officer about this. I don't know if this just refers to retirement annuities or if it is any annuity. It's also hard to determine if the annuity that is in her name alone belongs only to her or is an asset of the marriage.
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Contact a qualified elder care attorney. As the folks above said, the rules vary from state to state and these are matters that really should be addressed by someone familiar with the legal rules
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