How can creator (myself) of MART limit or control my kid, who is both Trustee and Beneficiary, as to what he/she spends my trust money for. For example, I don't want my trust money to be used for alcohol, gambling, etc how can I control/limit a bit that during my life? If I have unexpected expensive dental procedure, for example that is not covered by insurance, can I get via my kid who is Trustee/beneficiary to give me my trust $$ to cover my expense? thank you very much
The grantor of a trust has both the right to retain certain powers over the distribution of the income and principal of a Medicaid Asset Protection Trust. These include the power to control the beneficial enjoyment of trust assets and limited powers of appointment (removing and changing trustees and beneficiaries). Not only do these powers provide you with a measure of control, they also carry with them significant tax advantages over a straight-up simple irrevocable trust. I would recommend that you consult with an experienced trust attorney who can create a properly drafted document that will suit your specific situation.
If you are trying to obtain medicaid, then you are likely giving up control of your assets. If you put the assets into a medicaid assets protection trust then you could direct the trustee to give you access to income. you cannot direct the distribution of pinricipal as that would then become an available resource for medicaid. Sometimes these medicaid trusts have backdoor clauses where the trustee (typically a friend or family member you trust) can gift out to your children. If the trustee exercises his discretion to do the gift out then you cannot control what the money is spend on.
If you want to control what the money is spend on then a medicaid trust is not for you.
if you do have to set up a medicaid trust b/c you want medicaid then choose somebody that you trust not to make those types of distriubtions.
you should also have spoken/should speak to the attorney who drafted this trust to discuss your concerns.
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