[WSBAPT] Trusts to Protect Assets from Medicaid

[Jim Doran]

Thank you, Krista.  I will get in touch with David if I do not get much
feedback here.  I am sure there are lots of nuances like the "life estate"
issue that I will learn about as we go.

Jim

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

On Tue, Nov 17, 2015 at 10:41 AM, Krista MacLaren <kjm.inc at mac.com> wrote:

> Hi Jim,
>
> I was just at an NBI Elder Law CLE on this topic last Friday, and one of
> the very informed speakers said at some point, don’t use life estates.
> Unfortunately I don’t know exactly what he was saying, because I had missed
> much of the day’s speakers and wasn’t following the discussion very well.
> If folks on the list don’t have the answer, you could check with David
> Kazemba in Wenatchee, the speaker.
>
>
> Krista J. MacLaren
> Attorney at Law
> Northgate Executive Center II
> 9725 3rd Ave NE, Suite 600
> Seattle, WA 98115
> (206)523-6116
> kjm.inc at mac.com
>
> Please note, as with most email providers, Mac does not encrypt email
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> On Nov 17, 2015, at 10:22 AM, Jim Doran <jim at DORANLEGAL.COM
> <jim at doranlegal.com>> wrote:
>
> 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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