Medicaid Planning: 5-Year Income Only Trust (12 Pages)

This Form is a Declaration of Trust by a Grantor seeking to qualify for Medicaid eligibility. The Trust is irrevocable. The Trust provides for the Trust income to be paid to or for the Grantor’s benefit for a period of five years. No Trust principal may be paid to the Grantor. Upon the first to occur of the Grantor’s death or the expiration of five years from the date of creation of the Trust, the Trust terminates, and all of the Trust property is paid to the Grantor’s children in accordance with a limited power of appointment (in the event of the Grantor’s death) or to the Grantor’s children per stirpes in the event of the expiration of the Trust term or the Grantor’s non-exercise of the limited power of appointment.
 

Assuming the Grantor outlives the five years of the trust term, an application may then be submitted to Medicaid taking the position that the Grantor has not transferred any assets within the past five years that could have been used for the Grantor’s support. 
 

SUGGESTED CLE COURSES: Please note: Mr. Siegel's "Social Security, Medicare And Medicaid: What You Need To Know" is currently available on audio CD and DVD atwww.nlfcle.com and online at www.nlfonline.com. On both of these web sites, click on your state (or any state if you do not care about earning CLE credits) and scroll down to the course title which appears under the heading "Other". 


Author: 
Steven G. Siegel is president of The Siegel Group, which provides consulting services to attorneys, accountants, business owners, family offices and financial planners. Based in Morristown, New Jersey, the Group provides services throughout the United States. Mr. Siegel is the author of many books, including: The Grantor Trust Answer Book (2012 and 2013 CCH); CPA’s Guide to Financial and Estate Planning (AICPA 2012); and Federal Fiduciary Income Taxation (Foxmoor 2012). In conjunction with numerous tax planning lectures he has delivered for the National Law Foundation, Mr. Siegel has prepared extensive lecture materials on the following subjects: Planning for An Aging Population; Business Entities: Start to Finish; Preparing the Audit-Proof Federal Estate Tax Return; Business Acquisitions: Representing Buyers and Sellers in the Sale of a Business; Dynasty Trusts; Planning with Intentionally-Defective Grantor Trusts, Introduction to Estate Planning; Intermediate-Sized Estate Planning; Social Security, Medicare and Medicaid: Explanation and Planning Strategies; Subchapter S Corporations: Using Trusts as Shareholders; Divorce and Separation: Important Tax Planning Issues; The Portability Election; Generation-Skipping Transfer Tax: A Comprehensive Review; and many other titles. Mr. Siegel has delivered hundreds of lectures to thousands of attendees in live venues and via webinars throughout the United States on tax, business and estate planning topics on behalf of numerous organizations, including The Heckerling Institute on Tax Planning, CCH, National Law Foundation, AICPA, Western CPE, the National Society of Accountants, the National Tax Institute, Cohn-Reznick, Professional Education Systems, Inc., Foxmoor Education, many State Accounting Societies and Estate Planning Councils as well as on behalf of private companies. He is presently serving as an adjunct professor of law in the Graduate Tax Program (LLM) of the University of Alabama, and has served as an adjunct professor of law at Seton Hall and Rutgers University law schools. Mr. Siegel holds a bachelor’s degree from Georgetown University (magna cum laude, phi beta kappa), a juris doctor from Harvard Law School and an LLM in taxation from New York University Law School.