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There are different types of trusts . Go to a lawyer with this question . Also most states have 5 year look backs , some less.
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Reply to waytomisery
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Self pay for the care! That is the best way to keep medicaid from bothering with the trust.
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Reply to Isthisrealyreal
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Isthisrealyreal Aug 12, 2024
So apparently I am judgmental for saying self pay to keep medicaid away from trust. This from the OP in private message.

I guess I am if I think that we should pay our own way. Okay, I own that. People should use their own money to pay for care and not utilize social services unless they truly need it. This is directed at you jdg62.
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jdg1962, you would need to speak with an Elder Law Attorney. I believe there is an "Irrevocable Trust" that one can use to protect the family trust. One really huge negative for such a trust is if your parents needs funds today to fix something on the house, send a grandkid to college, travel around the world, or whatever, the parent cannot pull out any money from that Trust.


Please note, Medicaid is funded by State/Federal taxes. Just curious, why would you want us taxpayers to pay for your parent's care when they have money to pay for it themselves?
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Reply to freqflyer
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akababy7 Aug 12, 2024
Never heard of "if your parents needs funds today to fix something on the house, send a grandkid to college, travel around the world, or whatever, the parent cannot pull out any money from that Trust"? Momma has a revocable trust and we pulled money out to have repairs done to the outside of her house, hardwood floors in her den and etc.
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You pay for needed care with your money and Medicaid will never bother you a bit. The taxpayers don’t deserve to pay for needed care so your trust can remain intact and untouched.
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Reply to Daughterof1930
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I am of a mind that the money we save should go to our care when we age, should we live so long, and not to our heirs. If some is left over for our heirs that's just lovely.

If YOU are of a mind to try to cheat the federal and state government by getting the taxpayer to front your care, I will leave you to the high-cost lawyers waiting more anxiously than your heirs to acquaint themselves with you.

So, real answer, see a Trust and Estate attorney for your options.
And I will be so kind as to warn you that putting your money in an IRREVOCABLE TRUST takes it out of your hands that moment. You cannot after that control or retrieve or change your mind. You will be tossed, by those loving heirs, into a government funded memory care (read not as good a the plush ones) where you will (happily for your heirs) die a quicker death than at the ones that bow and scrape to keep you happy for years so that THEY can get your money instead of your heirs.
Ah, this having of money is SUCH a dilemma! Isn't it?
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Reply to AlvaDeer
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You pay for the care received and don't try to scam the government by having a cushy "trust" to fall back on at the expense of taxpayers.
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Reply to Tynagh
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igloo572 Aug 13, 2024
The “trust” may not be cushy.

If it’s just a house retitled via to a “trust” owning it, it’s still has costs that have to be paid. If the prior old owners or those kids of theirs who hope to inherit it, don’t have the $ to pay property costs year after year, then it’s going to start to deteriorate, get blight notices, have no insurance to pay for damages and get sold by the County at delinquent tax sale.

The living / family trust document “mills” were a heavy scam a few years back. Done at a free dinner seminar with high pressure selling techniques. No guidance on how to do funding of a trust. They are document mills.
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I thought the whole reason for a trust was to protect assets. Like said though there are revocable and irrevocable.
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Reply to JoAnn29
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Isthisrealyreal Aug 12, 2024
I thought it was to protect our assets from unscrupulous people and businesses, not to get welfare.
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Elder Law Attorney!!!!

Protecting Trusts from Medicaid is their forte. You need to consult with one in the state where your LO resides because every state has different regulations.
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Reply to LostinPlace
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This is a ? for the estate and trust attorney who did the “trust”.

But out of curiosity, is this a “trust” with real $$$ in it, owned by the Trust so $ invested and produces income? So investment enables Trust to internally pay all costs for whatever assets (eg a house) titled to the Trust as well as for Trust management costs?
OR
is this a house owned by the “family trust” as the only asset & elders use their own SSA or other income / savings to pay property costs as needed?
If the latter is what you did, well imho, it was a waste of time & money unless the kids/potential heirs & their spouses are beyond 100% all kumbaya on equitably paying & dealing with all property costs always till sometime in the undetermined future of possibly years and years.
Why?? Well LTC Medicaid requires in-a-facility elders to do a Share of Cost or copay to the facilty of almost all their income. Once they file a LTC application, they will have no-none-nada of their $ to pay property taxes, repairs, insurance, yard work etc on the house fully & legally owned by the Trust. All they have for restricted spending is the avg $50 or $75 a mo their State has allowed as their Personal Needs Allowance. Elder will have no way to pay homeowners insurance, prop taxes or even grass cutting on that “trust” titled house.

If that’s your story, either you & your siblings pay every penny on the house costs based on each % erstwhile ownership share as per the legal on the “trust” or whomever is POA on this albatross pays all costs and hopes the siblings are willing to reimburse those costs whenever the house is sold. Too bad, so sad for the POA if they won’t.
If taxes are not paid, it will eventually go to County property tax delinquency and sold via a tax deed. Imo if LTC Medicaid filed for, having a stand alone house as the entire “irrevocable trust” runs a lot of risk that property care & costs will not be done. Likely a Sibling and their spouse who DNGAF about the house or have no $ to pay their %. If avg 30K annual for taxes, insurance, upkeep, someone other than the parents in a NH on LTC Medicaid better be able to readily pay.
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Reply to igloo572
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MargaretMcKen Aug 13, 2024
You clearly need a copy of the trust documents to take hot-foot to a lawyer. Ideally go with someone else from 'the family', because they probably think this is all done and dusted, with no need for more advice. It would be interesting to find out what the original lawyer who set it up has to say - did they just do what was requested, or did they promise what the results would be?
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Consult an eldercare attorney. Every situation is different.

when we close on my parents house next month my sisters and I will be paying Medicaid it’s due for both my father and mother’s care at the SNF. Five years ago I cared about keeping the house but their sorry situation just dragged on and on. It was depressing.

I reached the point where I honestly didn’t care anymore about the money, my freedom and ability to enjoy my retirement years were worth more to me than proceeds of their damn house.
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Reply to Hothouseflower
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