FUNDING AND TAX CONSIDERATIONS INVOLVING CHILDREN’S TRUSTS IN MEDICAID PLANNING
by Thomas D. Begley, Jr., CELA Funding Many clients who use Children’s Trusts as part of their Medicaid planning are non-crisis planning clients. They either have an early diagnosis or are elderly but in good health. They are doing advance planning and want a sense of independence. They do not want all of their assets…
CHILDREN’S TRUSTS AND MEDICAID PLANNING
by Thomas D. Begley, Jr., CELA (Originally published in the June issue of “The Straight Word”) Under a Children’s Trust typically a parent transfers assets to an irrevocable trust for the benefit of her children and reserves no right to access to either income or principal. One or more children usually serve as trustee. The…
THE PROBLEM WITH INCOME ONLY TRUSTS IN MEDICAID PLANNING
by Thomas D. Begley, Jr., CELA Purpose Income Only Trusts are a means by which seniors transfer assets to a trust rather than to their children. Seniors tend to view transfers to trusts as protection, while they tend to view transfers to children as gifts. Trusts provide them with a sense of dignity and…
TRUSTS/MEDICAID CONSIDERATIONS
by Thomas D. Begley, Jr., CELA There are seven Trust that should be addressed in considering Medicaid. These are: Revocable Trusts, Income Only Trusts, Children’s Trusts, Disability Annuity Trusts, Disability Annuity Special Needs Trusts, Self-Settled Special Needs Trusts, and Third Party Special Needs Trusts. There are seven considerations in drafting trusts. These are: availability of…