From 24/7 Wall St. · Gerelyn Terzo · · 1m 10s
She’ll Put Dividend Portfolio in Trust Before Nursing Home
Widow moves dividend portfolio to irrevocable trust to avoid Medicaid touch, but $800 monthly income still counts toward nursing home bills.
In brief
Widow moves dividend portfolio to irrevocable trust to avoid Medicaid touch, but $800 monthly income still counts toward nursing home bills. Widow funds dividend portfolio in irrevocable trust before nursing home to shield assets, but Medicaid still counts $800 monthly income toward care costs. Originally reported by…
Widow’s Dividend Portfolio Strategy
Widow moves dividend portfolio into irrevocable trust before nursing home entry to shield assets from Medicaid.
Medicaid Counts $800 Monthly Income
Medicaid may still count the $800 monthly income from trust portfolio toward nursing home care costs.
Federal Trust Rules Apply
Federal statute 42 U.S.C. § 1396p(d) uses the 'any circumstance' test for Medicaid trust eligibility.
Trust Income Treatment
Trust income can count as Medicaid income if payments reach widow’s benefit or are made for her care.
60-Month Look-Back Period
Funding trust within 60-month look-back window may trigger Medicaid penalty period for coverage delay.
Trust Language Decides Outcome
Trust terms determine if principal, income, or payments count as Medicaid assets or income.
Suze Orman’s Warning
Suze Orman warned on podcast that trust control could be lost if trustee dies or steps down.
What it means
Widow funds dividend portfolio in irrevocable trust before nursing home to shield assets, but Medicaid still counts $800 monthly income toward care costs.
