Listen to Lawrence Letter: Can a Medicaid trust pay for rent for an interim home?
May 27, 2022
Dear Clients and Friends:
Here is a question that I get a lot and have covered in numerous past LISTEN TO LAWRENCE LETTERS. However, I will keep answering it because it is so important.
I am not sure I have seen this question covered in past newsletters. My parents set up an irrevocable Medicaid trust with you. It contains their current residence. They would like to move and sell the house, purchasing a new home near us. However, it is likely that they will need to rent for a period of time before we are able to find a new home. Can the trust pay for the rental cost? Thank you.
NO, NO, NO, NO!!!!!!!
The trust can never pay a personal bill for the grantors/settlors of the trust (your parents). Rent would be a personal bill. Paying a personal bill, even once, even for a very small amount, destroys the trust for Medicaid purposes.
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Until next time,
peace, health and happiness,
Lawrence Eric Davidow