Will this count towards Medicaid look back? Nothing has been deposited the last 6 years. I also have stocks in her name (UTMA) Account of a minor. Same situation. Nothing has been added the last 5 years. Can I make my daughter the account holder for my grandkid or would this be considered a gift?

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Thank you all so much for your answers. It's very helpful to hear your side of the problems which could arise and I'll get everything double checked to make sure that my wishes are protected.
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You definitely need to speak with a money manager, Bank Trust Officer and in some cases; Big CPA firms have Trust/Will people to help you with this.

Just because you have your daughter as sole beneficiary since she is an only child; this will NOT PROTECT YOUR assets from the Government of nursing facilities.

Our daughter is an only child too. 99.9999% of everything we have will go to her, plus various charities i.e. Human Society and AZ State University Music dept (she was in the marching band in college).

We still had to separate all our assets and name her specifically. This does not GUARANTEE that she gets everything, as there may be outstanding debts and the Court will become involved (we live in Probate State). The Court is allowed to have an inventory done excluding heirlooms, decide what must be sold to pay creditors; THEN she will receive what is left.

Many people draw up their own Wills without knowing their State Laws.

ALSO, beware that Attorneys may be Estate Attorneys, but they don't always draw Wills up properly and also scam the person listed to inherit.

Always get a second, third even fourth opinion. Consultations are generally free for 1 hour. They can review your Will and suggest what should be changed to have things done according to your wishes.





I have my Mom's, I have to file with State it was originated as I live in another State.
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Banking regulation(s) require that any type of account opened for a minor must be done as custodial.

This is to protect the money, in your case, most likely from your grandchild's parents (presuming).

It actually "belongs" to your grandchild, but he/she does not have signature rights to withdraw funds. Even when your grandchild comes of legal age, you can stay custodian should you feel the funds will be misused i.e. for college tuition, but he/she decides not to go to college.

Custodial accounts are really a basic Trust Account. You control all funds for your grandchild UNTIL you
1. Decide to sign over to grandchild at which time a new signature card will be done removing your name/title of custodian and placed in your grandchild's name
2. Close the account for what ever reason
3. Have the child listed as beneficiary should any thing happen to you
4. Request funds in your Will to be turned over to another party i.e. your money manager to handle like a Trust account

Having experienced various scenes regarding this question as a banker, BE PREPARED!

1. Parents know about the account and get upset that they can't get to the money as the parent, so they come to you upset and demand access
2. Grandchild knows about the account and therefore the money is theirs so why can't they get to it
3. Parents upset that they are not beneficiary because it's money meant for their child
4. Grandchild has to convince grandma, grandpa or both to sign over the account to them because they are no longer a minor....that was always so much fun.....NOT.

The same regulations hold true if you purchased E or EE bonds for your grandchild.

The bond will be in your name as a POA for.....upon death and also typed as "gift" (that way when cashed in, you don't pay the tax on dividend).
Your Social Security number is the one listed. Only you will be able to cash these E or EE bonds or have the bank send in to the Federal Reserve to change over to the grandchild's name making them the grandchild's bond(s).

These too, can be placed in your Will to be managed by your portfolio manager to handle.

So, what it all boils down to is that even though ONLY YOU can withdraw the funds, this is not your money. It is all a "gift" for your grandchild.

Make sure that it is setup beneficiary wise the way you want to protect it.

Example, people use GO FUND ME accounts now. It use to be that an account would be opened through a bank for people who cannot bury a loved one.

These accounts would get thousands and thousands of dollars to help with the burial (this happened with a friend of my brother). Since the accounts would be opened in the name of the parent(s) or whomever, they could withdraw the funds....FOR ANY REASON; THEY DO NOT NEED TO EXPLAIN.

As in the case of my brother's friend whose baby daughter died of SIDS, they withdrew all of the funds and purchased items for themselves INSTEAD OF PAYING THE FUNERAL HOME.

This became such a common practice, including fraud by people claiming to have cancer etc, banks had to change the way they handled these accounts.

Hope this helps. Talk with a banking officer at your bank branch to make sure everything has been setup the way you intended and to protect it for your grandchild.
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@igloo572--Evelyne2's life expectancy is actually closer to 86 right now because she has already survived to 67 and is in good health. It would be 81 at birth but it increases as one lives longer. (I used the Social Security Actuarial Life Table to obtain this number.)
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To a nursing home. I see all these questions every day and like to be prepared. It's never too early to gather as much info as possible and I'm new to this
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I receive spousal support and have to plan ahead, just in case I have to go
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Those chicken dinner “Keep Government from taking your $” seminars? Expect to get approached to put house into trust and buy an annuity or two. Huge commi$$ions on insurance products which an annuity is.

Do you not have much monthly income (like from SS)?
Is that why you were looking at a RM?

Your 67, life expectancy for females in US is 81. Your really young.
Is there something happening that leads you to think your dead or very disabled before 70?
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I attended a Trust seminar and was told that it would take 5 years to go into effect. A reverse mortgage is of no help, since I paid my house in cash (I immigrated and had no credit history) 30+ years ago. It would protect the house from day 1, but Medicaid still could take it if I (now single) am in NH. My simple will states that my daughter will be my sole heiress. Is there another way to place something in my grandkid name? I am 67 and pretty healthy, but I just like to be prepared
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If UTMAs were done with grandkids as owner, & all deposits / transfers you did was over 5 years ago, then it’s theirs. DOES NOT count as your asset.

UTMA would have needed to be in their social security # NOT yours.

How to find out is pretty easy, if the banking was interest bearing the bank will send you the interest paid (pitiful amount likely paid) as a IRS reported form each year for the owners taxes. You should get these by mid Feb as 1099 reporting was to be filed by EOM January. If not interest bearing ( most would be I think), then you’ll need to find out from bank as to ownership of account. For the stocks, call your FA or broker and ask for a ownership report on all assets in your account.

Hopefully everything in grandkids SS# so your Custodian not owner. 

As an aside on your question, for my mom’s Medicaid (TX) application I had to get on bank letterhead a signed document as to the disposition of any & all acccounts closed within last 5 years. I have no idea if this is common but if so having a relationship with a bank officer will come in handy as it took better part of a morning. Document was like Cd $5,678 #12345 expired 1/2/2011 deposited to checking account #56789 1/2/11 for $5,678.  I’m pretty sure IF ANY had not been totally completely deposited in full into her account, I would have had to deal with a transfer penalty inquiry by Medicaid.  Mom had CDs, tbills & as they expired they were not renewed but instead deposited into her main drawing checking account. Started this fortunately before Medicaid was even a concept for her future. She outlived her money. 

?’s for you? How soon before their of majority? And perchance in your will did you do some assets to go into a Testamentary Trust to grandkids as well?
If you have more complicated assets & are thinking of using Medicaid to pay for LTC, I’m of the belief that you need to work with an elder law atty & one that is CELA or NAELA.  Medicaid financial eligibility is not simple and then there’s the whole medical “at need” aspect of Medicaid that get overlooked.....
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