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Is having a revocable trust a hindrance/prohibition to

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Is having a revocable...

Is having a revocable trust a hindrance/prohibition to paying down one's assets in order to qualify for medicaid to get long-term care?

Lawyer's Assistant: Estate laws vary by state. What state are you in?

Alabama

Lawyer's Assistant: What documents or supporting evidence do you have?

I am just looking ahead. I am 74 and in excellent health. I am about to set up a revocable trust but am concerned about the future. I don't have enough assets to pay for my own long term care should I eventually need it.

Submitted: 4 months ago.Category: Legal
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Answered in 2 minutes by:
12/14/2017
Lawyer: Ray, Lawyer replied 4 months ago
Ray
Ray, Lawyer
Category: Legal
Satisfied Customers: 46,331
Experience: 30 years in civil, probate, real estate, elder law
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Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question and respond.

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Lawyer: Ray, Lawyer replied 4 months ago

It is not a hindrance but it does not exempt the assets from spend down.The trust would be liquidated here to get you under the medicaid resource limits.But its not a problem having a living trust otherwise.Trustee just has to do the spend down here in Alabama.

I appreciate the chance to help you today.Thanks again.

If you can positive rate 5 stars it is much appreciated.

Reference to income limits

  • ncome Limit. The income limit for Nursing Home, Hospital, or ICF-MR Medicaid is $2,199 per month for an individual (this income limit changes each January). There is a personal needs allowance of $30.00 per month that is not factored into the countable income.
  • The resource limit for Nursing Home, Hospital, and ICF-MR Medicaid is $2,000 before the first day of the month. This means that in order to be eligible for Medicaid you must not have more than $2,000 in resources on the first day of any given month.
  • The resource limit for Home and Community Based Waivers is $2,000 for an individual. Income and resources of the spouse do not apply to waivers.
  • For married couples: If the community spouse has less than $2,003 per month (2017) he/she is eligible to retain some of the institutionalized spouse’s income to reach the minimum (This amount changes each July). If the community spouse has gross income at or above $2,003, no additional income can be allocated from the institutionalized spouse to the community spouse. Alabama is an “income first” state, meaning the state limits the right to petition for an increased community spouse resource amount (CSRA) to couples whose combined income fails to meet the community spouse’s income needs. Basically, this means a community spouse can petition for an increased CSRA where there’s an income gap only after factoring in the nursing home spouse’s income first.
  • If the community spouse’s resources are less than $27,000 he/she may retain some of the institutionalized spouse’s resources to reach the minimum. The maximum amount of resources the community spouse can retain equals one-half of the couple’s total assets up to a value of $238,440.
  • The money paid out for SSI Related Medicaid is $735 for an individual and $1,103 for a couple. (This income limit changes each January.)
  • If you have income above the maximum, a miller trust can be set up, putting the excess money in a trust devoted to paying the state back for some of the cost of care.
  • The Medicaid applicant’s home, vehicle, jewelry, clothing, and furniture can all be considered exempt assets when figuring into the maximum resource value.
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Lawyer: Ray, Lawyer replied 4 months ago
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