. . . which is why you place all your assets in a Living Trust. . . you technically, and legally, HAVE no assets. . .
Yes, but they are still counted as assets if the trust is revocable and you must put it in an irrevocable trust and it must be done far enough in advance of the application for medicaid benefits, at least 5 years in advance.
If you apply during that time it results in a calculated period of ineligibility for the benefits based on the value of the assets transferred away without fair compensation in return.
Goodness. If you’ve paid someone to prepare a “living” (ie: intervivos revocable) trust for you thinking that it would protect your assets for Medicaid purposes, you’re in for a big disappointment.
yes, but it is quite possible to reach into a living trust to collect a debt
especially if you are the government
just saying
i’m working on that. i think it is a good idea. in my case i want my gf to be secure but not to allow my assets to pass to her relatives. They are very well off and just want her to work just not in the family business.
Well yes and no...
If you create an "irrevocable trust" the state can not seize its assets. If you create a "revocable trust" however, the state can and will force a change in the trust document to allow seizure of trust assets.
Why would you pick a revocable over an irrevocable trust? Lets say that one or more of the beneficiaries of your trust seem likely to drink and party their way through the assets once you die. A revocable trust allows you to make changes to the trust document and in essence write them out of the trust or perhaps have the trustee keep them on an allowance.
If you create an irrevocable trust no subsequent changes are allowed. When you sign off on the trust document, it is what it is and anything you didn't anticipate is now cast in stone for better or worse.
Regards,
GtG
have already checked this out with two lawyers, living trust will not work.