[WSBAPT] Medicare Trust

[Setareh Mahmoodi]

Client retained full control over all her assets hence the name revocable.
All assets were and are within her control and therefore, not protected or
removed from her estate and not exempt. RLTs don't provide any asset
protection. All assets remain available to the trustmaker even if funded to
the trust. Often, laypeople misunderstand and/or misinterpret "trusts" as
protection tools, it's not *always *the attorney's fault so I would be
hesitant to believe an attorney would have said that about a RLT without
further inquiry. (Not impossible just unlikely if the attorney is
experienced in trust and estates).

In order to protect assets or remove and reduce the size of her estate for
Medicaid planning, she would have had to utilize more complex strategies.
One of which is an *irrevocable *trust, which can provide asset protection
and/or remove assets from the estate to plan for Medicaid purposes.

Good luck!

Setareh


On Tue, Jul 27, 2021 at 8:44 AM Marcus Fry <mfry at lyon-law.com> wrote:

> Your client was told incorrectly.  Not uncommon.  Laypeople think there is
> only one type of trust and that their RLT protects from all kinds of
> creditors.  Resources held in a RLT are not exempt from being counted in
> Washington State for Medicaid.  See WAC 182-516-0115.
>
>
>
> Marcus J. Fry
>
> Lyon, Weigand & Gustafson, P.S.
>
> P.O. Box 1689
> Yakima, Washington  98907
> Telephone:  (509) 248-7220
> Facsimile:  (509) 575-1883
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> *From:* wsbapt-bounces at lists.wsbarppt.com [mailto:
> wsbapt-bounces at lists.wsbarppt.com] *On Behalf Of *michael
> westseattleattorney.com
> *Sent:* Tuesday, July 27, 2021 8:25 AM
> *To:* WSBA Probate & Trust Listserve
> *Subject:* Re: [WSBAPT] Medicare Trust
>
>
>
> Correction - drafter used words : " .. protects in case you or a family
> member needs to apply for state financial assistance"
>
>
>
>
> ------------------------------
>
> *From:* michael westseattleattorney.com <michael at westseattleattorney.com>
> *Sent:* Tuesday, July 27, 2021 8:11 AM
> *To:* WSBA Probate & Trust Listserve <wsbapt at lists.wsbarppt.com>
> *Subject:* Medicare Trust
>
>
>
> PC brought in a RLT from 2005 and said drafter told her that it protected
> her assets from Medicaid in case she went into a nursing home.  This was
> news to me. It is my understanding that the assets are considered to be in
> your estate when qualifying for meicaid. Yes, No?  Thanks
>
>
>
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-- 

*Best regards, *


*Setareh Mahmoodi *

*Attorney at Law *

*18222 104th Ave NE, Suite 103*

*Bothell, WA 98011*

*Phone: 425-806-1500*

*Fax: 425-489-4142 (Please email documents if at all possible)*

*Email: SM at LawOfficesofSM.com*

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