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Mom is 91 1/2 yrs old and has a Living Revocable Trust. She may have to go into assisted care. My sister and I are the executors,beneficiaries, and dual power of attorney-not in use yet of her Trust and Will. Questions: 1.)Is it in her best interest to protect the assets to have her gift out her entire assets to my sister and I now and start the 5 yr.Medicaid "look back" period going and how do I assure that my sister continues to pay her half or if she dies her heirs pay if this is done? 2.)Will Medicaid give us a hard time since we would have paid for 5 yrs? 3.) Would an Irrevocable Trust work now to protect the assets even though it would cost a lot to set one up now? 4.)Or just go with the 2 of us as Co-Trustees if Mom steps down? Help!
Optional Information: State/Country relating to question: Florida Already Tried: Mom has asked me personally to pay her bills and handle her affairs. She is still in control. A checking account, i pay bills from, has all 3 names on it: Mom, Sis, and I. However, I would need to be able to transfer money from money markets to pay for assisted care should she need it. What is the best course of action; Gift out all assets and get the Medicaid "clock ticking" for 5 yrs or go as Co-Trustees if Mom steps down?
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1.)Is it in her best interest to protect the assets to have her gift out her entire assets to my sister and I now and start the 5 yr.Medicaid "look back" period going and how do I assure that my sister continues to pay her half or if she dies her heirs pay if this is done? - Yes, or to put them into an irrevocable trust outside of her own control. An irrevocable trust generally is not subject to the 5 year look back period. But the key would be to do this as soon as possible to start the 5 year period.
2.)Will Medicaid give us a hard time since we would have paid for 5 yrs? - No. The 5 year look back period does not have an "equitable" exception, that is for individuals paying for the care for the 5 years, and then getting Medicaid, Medicaid doesn't have the ability or discretion to deny them that.
3.) Would an Irrevocable Trust work now to protect the assets even though it would cost a lot to set one up now? - No, an irrevocable trust would still be subject to the 5 years, although if it were in an irrevocable trust, after 5 years from the date of transfer it would be protected.
4.)Or just go with the 2 of us as Co-Trustees if Mom steps down? - If you mean in the revocable trust, that would not work. A revocable trust is considered as an asset.
So a revocable trust does not take property away Medicaid asset search. Only an irrevocable trust would take it out of consideration.
Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please select the "accept" button. If you have already clicked "accept", or if you will in the future, please let me know so I can track these for my own reports and customer satisfaction stats. Thank you, and again, good luck to you!
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My apologies, but I must assist the other customers that are waiting. If there is something else that I can help you with, please let me know. Please note that I do not get any credit for the time and effort I spent on this (or any question) unless and until you select "accept". Thank you, and again, good luck to you!
Also, Medicaid recapture is not Florida but Federal law, so this applies in ALL 50 states.
I see that you have not responded in some time. Please note that this question is still open until you click "accept". I believe that I have answered your question, but if you have any other questions, please let me know. If not, and you have not yet, please select the "accept" button. If you have already clicked "accept", or if you will in the future, please let me know so I can track these for my own reports and customer satisfaction stats. Thank you, and again, good luck to you!