What are the rules for Medicaid trusts?

Medicaid trusts are designed to help those who are not eligible for Medicaid benefits to protect their assets without having to sacrifice important benefits. In the state of Florida, there are a few rules for setting up a Medicaid trust. First, the trust must be irrevocable, meaning that the trust cannot be changed or amended once it is set up. Second, the trust must be set up by a third party – usually an attorney – rather than by the beneficiary or their family members. Third, the trust must be specifically designed to meet Medicaid rules, which means that it must not allow the beneficiary to have direct access to the trust assets. Fourth, the trust must name a trustee, who is responsible for managing the trust assets and making sure that the trust complies with all the Medicaid rules. Fifth, the trust must have a financial limit, which is the amount of money that is exempt from the Medicaid rules. Finally, the trust must name a beneficiary, someone other than the person setting up the trust, who will be entitled to receive the trust assets when the trust ends. These rules are in place to ensure that the trust is conserving the assets while also providing the beneficiary with the important Medicaid benefits they need.

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