You've probably gotten a postcard or seen an ad for a seminar on "Living Trusts" and all the benefits they supposedly offer you. Basically, a Living Trust is a trust you create and fund during your life and which you retain the ability to change and revoke at any time.
They have their place and can be quite useful, in the right circumstances, but the question of today is whether they are useful if you may be applying for Medicaid. If you need any help regarding Medicaid planning then you can contact Medicaid attorney in Orlando online.
The problem with Living Trusts for someone applying for Medicaid is that everything titled in the name of the Living Trust is considered an available asset, even if it was exempt outside of the Living Trust.
For example, your house is cheated (up to $500,000), however, if you plan it in your Living Trust, it unexpectedly loses its own exemption. That alone may enable one to become ineligible for Medicaid, forcing one to deed your own house out from this Trust back into your name.
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Exactly the exact same could be the case of one's vehicle or your other personal possessions. But if you're single, you'll need to invest those assets down in virtually any instance, as a way to be eligible for Medicaid, therefore that is a doubtful advantage.
As you fundamentally need to draw all of the Trust resources and retitle back them in to your name, since you can observe it makes zero way to pay for a lawyer to generate a Living Trust to you personally whether you're unmarried and confronting long-term maintenance, of course, if you believe you can want or need to make an application for Medicaid at a certain time.
If you're married, it's likely for town Spouse (i.e., the spouse not at the nursing home) to possess resources titled in the name of a Living Trust, however, there's usually little benefit to this in a country like Colorado that includes relatively affordable and easy probate procedures.
As a question of fact, there's a kind of trust which town Spouse may put to be financed after the passing of town Spouse, which is able to take resources for the sake of their nursing home spouse nonetheless maybe not rely upon that spouse's Medicaid eligibility. But, this kind of hope can't be utilized at an income Trust and certainly will just be utilized at a Will.
So the lesson of all this is that Living Trusts may be useful for general estate planning purposes but are inappropriate or worse in a Medicaid planning situation.