Can medicaid take money from an irrevocable living trust

Asked over 2 years ago - Puxico, MO

My Mom has an irrevocable living trust. If you needs to stay in a nursing home does Medicaid take the money in her irrevocable living trust

Attorney answers (3)

  1. 2

    Lawyers agree

    Answered . The matter would require a hearing if they file a claim against the estate. An experienced attorney can make an argument against the claim if your set of facts exists. Good luck.

    NOTE: The use of the Internet for communications with the firm or this attorney will not establish an attorney-... more
  2. 2

    Lawyers agree

    Answered . Yes but not actually "take from the trust." Technically, what medicaid will do is deny any medicaid claim and decline to pay any benefits until the funds in the trust uses up its own funds.

    This comment does not create an attorney-client relationship. The law and its application by the courts is... more
  3. Answered . You are mixing up terms. There is no such thing as an irrevocable living trust. A "Living Trust" is a common name given to a revocable trust. This kind of trust has very little asset protection and would do nothing to protect assets from Medicaid reimbursement. Furthermore, all of the assets within such a trust are "countable" assets, for purposes of Medicaid qualification. You would never use this kind of trust for Medicaid purposes.

    An Irrevocable Trust COULD protect assets and put them out of reach for Medicaid purposes, provided the transfer into trust was made MORE than 5 years prior to applying for Medicaid.

    The Medicaid rules are immensely complicated and you do your mom and yourself a disservice, if you fail to meet with an attorney to address your concerns.

    James Frederick

    *** LEGAL DISCLAIMER I am licensed to practice law in the State of Michigan and have offices in Wayne and... more

Related Topics

Revocable trust

A revocable trust is one that you can change, remove property from, or even revoke entirely at any time. Often, the trust maker is also the initial trustee.

Irrevocable trust

Once you set up an irrevocable trust, you can't change the terms or provisions. This type of trust is useful for minimizing estate taxes and protecting assets.

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