What is a Medicaid trust?

A Medicaid trust is a legal arrangement that enables certain individuals to be eligible for Medicaid benefits while still retaining wealth. In Washington, a Medicaid trust is sometimes referred to as an irrevocable or special needs trust. It allows individuals or their families to provide money, property, or other assets to a trust, which can be used to supplement their Medicaid benefits. It is important to note that if an individual places an inheritance or other funds into the trust, these funds will not be counted as a part of their asset total in determining Medicaid eligibility. Any money or property placed in a trust is no longer owned by the individual, and therefore not included in the eligibility calculation. This makes Medicaid trusts a viable option for individuals who need assistance from the government but also have existing assets. The funds from the trust can be used for expenses not typically covered by Medicaid, such as education, transportation, entertainment, and more. In addition, a trust may allow for family members to receive benefits if the person with the trust passes away. For those in Washington considering a Medicaid trust, it is important to consult an experienced elder law attorney who is familiar with Medicaid regulations and laws in the state. This will ensure that all aspects of the trust, such as asset allocation and beneficiary designations, are properly handled to ensure all applicable requirements are met.

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