This is my first entry in my blog on my website. I intend to talk the type of work that I do in estate planning, Medicaid eligibility planning and asset protection, and another type of interesting matters as they arise.
Today is Sunday, January 19, 2014. I typically do not work on Sundays but because I recently returned from an extended vacation I have a lot of work to do. I was able to draft two irrevocable trust-based plans today. The intent of these plans and trusts is to protect assets of the respective clients in the event either require long-term nursing home care in the future. When dealing with these type of trusts it is important that the client understand that Medicaid takes the position that all assets transferred into an irrevocable trust within five years are presumed to have been done to qualify for Medicaid, and if a Medicaid application were to be submitted during this time frame that Medicaid could impose a significant period of ineligibility. This presumption can be rebutted if it can be shown that the transfer into trust was done exclusively for a purpose other than to qualify for Medicaid.
I have been successful in rebutting this presumption on numerous occasions. Typically the rebuttal consists of affidavits from medical providers, friends and/or family confirming that at the time the trust was created and funded the individual had no significant medical issues that would have required long-term care; and the reason for the long-term care is/was a traumatic onset of a disability that was not present at the time of the trust funding.
The two clients that I drafted these trust for had been previous clients.
I had previously prepared a will-based estate plan for one of these clients and her late husband. After his death she felt that more appropriate to try to protect assets in the event she needed long-term care.
The other trust was created for a long time client to whom I had initially prepared a will-based plan for her and her late husband, and then was able to successfully formulate a plan to secure Medicaid for her husband when he was admitted to a nursing facility. That plan involve a technique known as spousal refusal. Now that he is deceased she wanted to attempt to preserve assets for her family in the event she requires long-term care in the future. Even though she is in her 80s she is in relatively good health and an irrevocable trust-based plan is appropriate for her needs.