Our Blog

Many individuals have heard of the trusts used in estate planning, such as an Irrevocable Trust, Income Only Trust, or Medicaid Asset Protection Trust. However, there is a trust not so commonly known, a “Pooled Income Trust” which can be established by Medicaid applicants.

Many people use irrevocable trusts as part of their estate plan for tax savings, asset protection and Medicaid planning. In all these types of trusts, the Grantor (creator) of the trust is going to be limited to their access of the principal of the trust in order to ensure that their planning needs are met.

Question: I transferred ownership of my house to a Medicaid Qualifying Trust ten years ago. I just put it on the market for sale, where will the proceeds go after sale? Are they protected?

Question: My friend told me that when he dies, his house and brokerage accounts are going to go to his children in trusts. I thought that trusts were only for people with large amounts of money that are trying to avoid taxes. Is this true? What are the benefits of his children receiving assets in a trust?

Question: Am I able to obtain a mortgage on my real property if it is owned by an irrevocable Medicaid trust? Can a bank demand that an existing mortgage be due in full if I transfer my property to an irrevocable Medicaid trust?

Question: My aunt has a home that she purchased in 1980. It is now worth $300,000.00 and she wants give it to me to protect it from the cost of nursing home care. Can she just deed it to me? My lawyer is suggesting a trust. What is the difference?

A Pooled Income Trust allows a medicaid recipient to capture their income to pay their bills and qualify under the strict Medicaid income guidelines. This allows people to use their income to stay in their home and receive services.

Question: I want to start looking into creating a trust to protect my assets for Medicaid but the idea is over-whelming, can you explain the process?

When planning for the differently-abled, the use of Supplemental Needs Trusts as part of your estate planning will ensure that you have provided protections for those with special needs and disabilities. When considering your estate planning it is important to consider any beneficiaries who may have special needs or disabilities.

Many families (erroneously) disinherit a disabled child, believing that this is in the child’s best interest and instead leave assets to other family members so that they can care for the disabled individual. Even with the best of intentions, circumstances may arise in their lives that could directly affect their ability to provide for a disabled family member.