[WSBAPT] Medicare Trust

[Eric Nelsen]

You might try the Estate Planning, Probate, and Trust Administration in Washington (WSBA 2020), which used to be a couple separate Deskbooks on EP and Probate/Trust and now has been consolidated. Chapters 7 and 8 go through the tax planning issues. The book can be accessed by purchasing a subscription at Casemaker (see the “Libra Books” tab once you’ve logged in); it’s $200/yr for that book by itself. Also available in hardcopy or by subscription at LexisNexis.
https://www.mywsba.org/PersonifyEbusiness/CLEStore/Estate-Planning-Probate-and-Trust-Administration-in-Washington-2020/ProductDetail/18081688

I think it’s worth the money; I use it all the time for probate administration and litigation. Not so much for EP simply because I refer EP work to another attorney at my office, Karin Treadwell.

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of michael westseattleattorney.com
Sent: Wednesday, July 28, 2021 6:12 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Medicare Trust

Thanks - The problem with her was that she has several properties with large capital gains And gifting them now would transfer her basis and lose the step up. Where can I research the strategies, like an LLC your family Partnership, etc.? Thanks Mike
Sent from my iPhone


On Jul 28, 2021, at 1:44 AM, Setareh Mahmoodi <mahmoodi.setareh at gmail.com<mailto:mahmoodi.setareh at gmail.com>> wrote:

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<mailto: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> [mailto:wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>] On Behalf Of michael westseattleattorney.com<http://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"

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________________________________
From: michael westseattleattorney.com<http://westseattleattorney.com> <michael at westseattleattorney.com<mailto:michael at westseattleattorney.com>>
Sent: Tuesday, July 27, 2021 8:11 AM
To: WSBA Probate & Trust Listserve <wsbapt at lists.wsbarppt.com<mailto: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<mailto:SM at LawOfficesofSM.com>

Website: http://www.lawofficesofsm.com/



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