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My Mom has CD's in " trust for " her grandchildren. Are they safe from Medicaid?

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An account set up by a person "in trust for" another person is the same as a POD ("Pay On Death") account, i.e., the person who set up the account and put the money in the account continues to be the owner of the money with full control, but upon their death the remaining funds in the account pass automatically to the named beneficiary. So, as far as Medicaid is concerned, such an account is considered to be 100% the funds of the person who set up the account and funded it.
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Well are they CD's naming heirs, or did she establish a Living Trust with the help of a lawyer? While her intentions are good, Medicaid will want precise details on any funds. If she bought CD's with her name and made the child a joint owner, yes they inherit them BUT the Executor of her estate has to first pay all her bills, including Medicare. Get the exact details, asking someone to hold something "in trust" does not mean an actual TRUST even exists.
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I believe that anything gifted over 5 years back before the Medicare application is safe to begin with. I don't know about CDs if these were done less than 5 yrs. My parents had the living trust and had certain things written in their will re: disbursement of their estate, but except for an insurance policy where I am named beneficiary (was told that beneficiaries are safe from Medicaid) that is way older than 5 years....every other asset doesn't get paid out until Medicaid gets paid back....so only left over funds will be in the estate in the end. We actually just finished moving all assets into my Mom's name, to qualify my Dad for Medicaid, and now I am beneficiary on all the accounts instead of my Dad. And I don't know that secures a thing for me, if my Mom needs to go on Medicaid in 5 yrs or less. She's 88 now and frail, so I don't think she will last another 5 years, but who knows. My husband has early Parkinson's the doctors think, so we are considering talking with our trust attorney about doing all this gifting stuff right away to try to safeguard assets for our daughters. I don't really know how it works, but we need to 'plan' for what could be coming!
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I believe it depends on the social security number associated with each CD. If your Mom's, then it would be considered her asset & Medicaid would want it. That is a danger never considered when money earmarked for someone's far-off-in-the-future tuition is put in a grandparent's name (in the hope of getting better financial aid). It is considered the grandparent's asset, regardless of who put the money into that particular account. An elder-care lawyer would be the best person to ask. If affording one isn't an option, then even perhaps contacting your local or county department of aging. Good question!
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You ask if an "In trust Account" is safe from Medicaid. The answer given by K. Gabriel Heiser, is the correct answer. Payable on Death accounts, or "in trust for " accounts are deemed the funds of the owner.
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Your mom should use any funds she has to pay her own way before accepting government assistance.
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If what Attorney Heiser and Lifespan say is correct, the funds belong to your mother until she dies, then Medicaid will take the money. The way it is set up, the money belongs to her until she dies, therefore the CD's are her assets and will become Medicaid's upon her death.
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