[WSBAPT] Trusts to Protect Assets from Medicaid

[Jim Doran]

Hello Listmates:

I know this is a common question and I also know that there is tension in
the law regarding how and even "if" this can be done.  I have a client that
is asking the question in a pretty straightforward manner.  I think this
issue goes to the lack of progress in our society concerning health care
and dying.

H & W, both in their early 70s, want to put their significant assets, two
pieces of real estate and probably a third very valuable one that they will
receive as an inheritance from mother, into a trust to protect them from
the Medicaid asset requirements for eligibility and from the spend-down and
recoupment provisions of medicaid.  I would imagine the protection from
creditors in general is also part of the concept.

The concept is to put the assets into an irrevocable trust that gives them
a life estate in the property they choose to live in.  The trust would
direct that the remainder at the death of the second trustor would go to
the children in a typical scheme.  H & W would keep some assets, such as
investment funds and some cash and regular monthly income, out of the trust
to live on.  Those assets would not be protected.

One question for them is, who will be the Trustee?  This is an irrevocable
trust so you better choose wisely.

For me, the question is whether this can be done at all and how it can be
done.  I am aware of the five year look-back provisions so we want to do
this asap.

I do have access to the desk books and other library sources.  If someone
can point me in the right direction, give me the right name for this kind
of trust, or send me a model, it would be appreciated.

Jim Doran


James R. Doran
Attorney at Law
100 E. Pine Street -  Suite 205
Bellingham, WA 98225
(360)393-9506
jim at doranlegal.com
www.doranlegal.com
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