We have a trust set up for my Mother in-law which was set up over 5 years ago so the 5 year look back is now in place. I want to know how her outstanding balances on credit cards weigh in or cards with zero balances with high credit limits?

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Regarding the trust, was this set up years & years ago perhaps more for estate planning? Rather than specifically for Medicaid planning?

If so, I'd really suggest you get the trust reevaluated to see if there could be any Medicaid compliance issues. Trusts are an asset and some will count and some won't and the states will evaluate them now. Whether revocable or irrevocable and who created the trust (the Medicaid applicant, their spouse, someone other or trust established under a will) will all make a difference as to whether the trust will be viewed as an asset subject to spend down.

If the trust produces income, that's an asset & Medicaid will likely look to see if only the income (the distribution) can be counted or if the principal is exposed to be viewed as an asset. Just how the trust reads is going to be critically important now.

Medicaid is crushing state budgets so applicants paperwork can be looked at in detail to see if there's anything to keep them ineligible.
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Medicaid is not a credit check, so they don't really care what debts you have or what credit is available. They will insist all the available income goes to the nursing home. ALL of it. That leaves zero dollars to pay off any debt or upkeep any home or car. Those lenders foreclose in a separate process.
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