What is a Medicaid trust?

A Medicaid trust is an estate planning tool used to protect a person’s assets from being used to pay for long-term care. In Kansas, Medicaid trusts are also known as Qualified Income Trusts or Miller Trusts, and they help individuals who don’t qualify for Medicaid due to a high income, but who still need help covering the costs associated with long-term medical care. When setting up a Medicaid trust, the person setting up the trust, known as the grantor, transfers ownership of their assets to the trust. This transfer is called a “gift”, but it’s not subject to gift taxes. The grantor names the trustee, who is responsible for managing the trust’s assets and for determining how the trust’s income and assets are used. The trustee may make distributions to pay for the grantor’s long-term care costs. The trust itself does not qualify for Medicaid, but rather it provides a way for the grantor to protect their assets while still being eligible for Medicaid benefits. However, there are some limits on how much of the trust’s assets and income can be used to pay for the grantor’s care. The trustee is responsible for ensuring that the trust’s assets and income are used in accordance with those limits. In short, Medicaid trusts are a way to protect assets while still getting Medicaid benefits to pay for long-term care costs. They are an important part of elder law in Kansas, as they can help individuals who don’t qualify for Medicaid but need help paying for long-term care.

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