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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">An at home spouse can protect a home a car and in many cases, in excess of $100,000 of other assets.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Clients with significantly more resources than that are looking to go on Medicaid, need to understand that this will often mean they will receive care in less
than ideal facilities at state pay, instead of paying themselves for the best care they can afford.
<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">The only trusts that protect more than the amounts referenced above require giving up complete control and the right to benefit from the property while they are
alive. They cannot be the trustee, change the trust, change the trustee, or demand use or benefit of the assets. And this all has to be set up more than 5 years ahead of need. Given that most folks don’t end up in care facilities for years, but weeks or months
if at all, this is a hard thing for me to recommend and likely difficult for clients to swallow once they understand the rules. They could just as easily give the property away and wait five years, the ability to control and benefit should be the same as a
straight gift.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Heather<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt;font-family:"Vladimir Script";color:#1F497D">Heather S. de Vrieze</span><b><span style="font-size:16.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><br>
</span></b><i><span style="font-size:11.0pt;font-family:"Garamond",serif;color:#1F497D">Attorney-at-Law<o:p></o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-size:11.0pt;font-family:"Garamond",serif;color:#1F497D"><img width="264" height="147" id="_x0000_i1026" src="cid:image001.jpg@01D1212E.6E476540" alt="cid:image001.jpg@01D013C2.30F35160"></span></i><i><span style="font-family:"Garamond",serif;color:#1F497D"><o:p></o:p></span></i></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:Nyala;color:#44524E">3909 California Avenue SW<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:Nyala;color:#44524E">Seattle, WA 98116-3705
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:Nyala;color:#44524E">(206)938-5500
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><a href="mailto:heatherd@westseattlelaw.com"><span style="font-size:10.0pt;font-family:Nyala;color:#44524E">heatherd@westseattlelaw.com</span></a></span><span style="font-size:10.0pt;font-family:Nyala;color:#44524E">
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><a href="http://www.westseattlelaw.com/"><span style="font-size:10.0pt;font-family:Nyala;color:#44524E">www.westseattlelaw.com</span></a></span><span style="font-size:10.0pt;font-family:Nyala;color:#44524E">
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:Nyala;color:#44524E"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:9.0pt;font-family:"Arial",sans-serif;color:#002E8A">Click here to connect with de Vrieze | Carney on Facebook:
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<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Calibri",sans-serif;color:#A6A6A6">CONFIDENTIAL & PRIVILEGED. This e-mail message may contain legally privileged and/or confidential information. If you have received this e-mail in error, please
notify the sender immediately and delete all copies of this e-mail message and any attachment.</span><span style="font-size:16.0pt;font-family:"Cambria",serif;color:blue"><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Jim Doran<br>
<b>Sent:</b> Tuesday, November 17, 2015 11:01 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] Trusts to Protect Assets from Medicaid<o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt"><span style="font-size:13.5pt">John:</span><o:p></o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt"><span style="font-size:13.5pt">What they are concerned about is that if one of them does have to go into the longterm care and potentially hospitalization, and their relatively low insurance does not cover all
the expenses, they will have to expose their assets to the spend-down provisions or not qualify at all for Medicaid.
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<p class="MsoNormal" style="margin-bottom:12.0pt"><span style="font-size:13.5pt">Am I missing something here?</span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:13.5pt">Jim</span><o:p></o:p></p>
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<p class="MsoNormal">James R. Doran<o:p></o:p></p>
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<p class="MsoNormal">Attorney at Law<o:p></o:p></p>
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<p class="MsoNormal">100 E. Pine Street - Suite 205<o:p></o:p></p>
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<p class="MsoNormal">Bellingham, WA 98225<br>
(360)393-9506<o:p></o:p></p>
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<p class="MsoNormal"><a href="mailto:jim@doranlegal.com" target="_blank">jim@doranlegal.com</a><o:p></o:p></p>
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<p class="MsoNormal"><a href="http://www.doranlegal.com" target="_blank">www.doranlegal.com</a><o:p></o:p></p>
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<p class="MsoNormal">On Tue, Nov 17, 2015 at 10:50 AM, John Creahan <<a href="mailto:john@cairn-law.com" target="_blank">john@cairn-law.com</a>> wrote:<o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="color:#595959">Jim,</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="color:#595959">Before you start implementing your clients’ plan, I suggest you have a long conversation with them about what they really want. We all have different
interpretations about the meaning of “significant assets,” but given your brief description, it seems very unlikely that they would ever
<b>need</b> Medicaid. </span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="color:#595959">Even if they succeeded in giving all their assets away, what would they gain? If they needed long-term care, which they might not, the government would
provide some financial support that would allow them to live in a very basic facility.</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="color:#595959">If they compared private pay facilities to their Medicaid counterparts, they might reconsider their choices. If they are worried about spending down
all their wealth on long-term care, they might want to look into purchasing long-term care insurance.
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="color:#595959">Hope this helps,</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="color:#595959">John</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="color:#595959"> </span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:14.0pt;font-family:"Tw Cen MT",sans-serif;color:#595959">John Creahan</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;margin-bottom:12.0pt"><span style="font-family:"Tw Cen MT",sans-serif;color:#595959"><a href="tel:206-621-5848" target="_blank">206-621-5848</a><br>
<a href="http://www.cairn-law.com/" target="_blank"><span style="color:#595959">www.cairn-law.com</span></a></span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="color:#595959"> </span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="color:#595959"> </span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">
<a href="mailto:wsbapt-bounces@lists.wsbarppt.com" target="_blank">wsbapt-bounces@lists.wsbarppt.com</a> [mailto:<a href="mailto:wsbapt-bounces@lists.wsbarppt.com" target="_blank">wsbapt-bounces@lists.wsbarppt.com</a>]
<b>On Behalf Of </b>Jim Doran<br>
<b>Sent:</b> Tuesday, November 17, 2015 10:22 AM<br>
<b>To:</b> Real Property Section <<a href="mailto:wsbapt@lists.wsbarppt.com" target="_blank">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b> [WSBAPT] Trusts to Protect Assets from Medicaid</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
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<span style="font-size:13.5pt">Hello Listmates:</span><o:p></o:p></p>
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<span style="font-size:13.5pt">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.</span><o:p></o:p></p>
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<span style="font-size:13.5pt">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.</span><o:p></o:p></p>
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<span style="font-size:13.5pt">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.</span><o:p></o:p></p>
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<span style="font-size:13.5pt">One question for them is, who will be the Trustee? This is an irrevocable trust so you better choose wisely.</span><o:p></o:p></p>
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<span style="font-size:13.5pt">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.</span><o:p></o:p></p>
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<span style="font-size:13.5pt">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.</span><o:p></o:p></p>
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<span style="font-size:13.5pt">Jim Doran</span><o:p></o:p></p>
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James R. Doran<o:p></o:p></p>
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Attorney at Law<o:p></o:p></p>
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100 E. Pine Street - Suite 205<o:p></o:p></p>
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Bellingham, WA 98225<br>
<a href="tel:%28360%29393-9506" target="_blank">(360)393-9506</a><o:p></o:p></p>
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<a href="mailto:jim@doranlegal.com" target="_blank">jim@doranlegal.com</a><o:p></o:p></p>
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<a href="http://www.doranlegal.com" target="_blank">www.doranlegal.com</a><o:p></o:p></p>
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