Welcome! Thank you for your question.
The Medicaid caseworker is correct. In states like Oregon that have income caps on Medicaid eligibility for nursing care the federal government allows for a specific type of trust to hold all income over the income cap. While the Medicaid recipient is alive the income in the trust can be used to purchase items for the recipient like clothes, shoes, cable TV, a private room at the facility, etc. The downside is that after the recipient dies the remaining trust money must be paid to the state of Oregon's Medicaid program up to the amount that they spent on the recipient's care. Here is a a form
. It is not free. You may consider the advantages of using an experienced elder law attorney to advise you here is that you not only get the trust but expert advise on how to best use the money in the trust to assure your loved one has the best quality of life possible. You can find an experienced elder law attorney at www.naela.org
I cannot provide you with legal advise. I have provided you with information about the law related to your question. My answer, and any information that you find online, should not take the place of having a consultation with a lawyer in your area to advise you regarding your specific issues.
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