What is a Medicaid trust?

A Medicaid trust is a legal tool that can help individuals in California who are elderly or disabled qualify for Medicaid. This type of trust allows an individual to place his or her assets into a trust and avoid having those assets counted when determining eligibility for Medicaid. This is important for people who meet the financial qualifications for Medicaid but would otherwise be denied because of their assets. With this type of trust, the individual can still have control over the trust’s assets. The individual will be able to choose how the funds in the trust are used and who can manage the trust. However, the individual must ensure that the trust is set up and managed in a way that complies with Medicaid rules. Otherwise, Medicaid could deny coverage. The funds in the trust must be used for the individual’s care or for other specified purposes. Medicaid trusts can be especially helpful for individuals or families looking to protect their assets almost immediately. In California, a trust must be created at least five years before the individual needs Medicaid coverage. This is to ensure that the transfer of assets did not occur solely for the purpose of qualifying for Medicaid. Overall, a Medicaid trust is a tool that can be used to help the elderly and disabled in California protect their assets and qualify for Medicaid. In order to do this, the trust must be set up properly and the rules governing Medicaid must be followed.

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What is a Medicaid trust?

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