New York Trusts Lawyer

Trusts are entities or “persons” under law that are formed, for a variety of reasons, to hold, invest, manage, and distribute money or property.  A trust is a separate “person” from the individuals who create it and who are in charge of it.  Trusts are similar in this sense to other entities created under law, such as corporations.  A corporation is a separate “person” from the individuals who organize and who operate the corporation. Trusts can be used to protect your assets.

CONSERVE YOUR ASSETS

For Medicaid Planning or other reasons, trusts are used to place the savings or property or income of an individual into the hands of a separate “person,” i.e., the trust.  This savings or property or income may still be used for the benefit of the individual who created the trust.  However, the money or property or income that is transferred to the trust no longer belongs to that individual, it belongs to the trust. As a result, subject to the prevailing Medicaid rules and regulations, the assets or income in the trust may not have to be counted or considered when the individual who created the trust, or who benefits from the trust, applies for Medicaid.

Otherwise, if the individual retains, or retains control of, the same savings or property or income, he will be required to “spend down” to minimal levels before he or she can qualify for Medicaid.

Trusts and Medicaid Planning

For Medicaid Planning, different kinds of trusts may be used, depending on the individual client’s specific circumstances. These trusts may include a supplemental needs trust, (special needs trust), a pooled income trust, a grantors trust, or others.

It is beyond the scope of this discussion to explain the details and differences of these various trusts.  It is a complex subject that involves the Medicaid laws, the tax laws, and other considerations as well.