The Listen to Lawrence Letter: Always O.K. to Take Care of Yourself!

CLIENT QUESTION:

I’m putting my house in an irrevocable trust to get Medicaid-ready. I have other investment accounts that are not in the trust like my IRA, 401K, and money in my checking account. I can continue to pay the mortgage including taxes from my checking account, correct? As long as I spend the money on myself or maintaining the house, etc. it’s fine correct? Thank you for listening.

MY RESPONSE:

The way I design my Medicaid trusts is that you continue to be responsible for all the taxes, insurance, and maintenance on the house. As such, you can pay these bills because they are YOUR bills. You are not making a gift to anyone else and that is why there is no lookback invoked when you make these payments. You are doing everything correctly.

And, if anyone you know would like to

receive this Listen to Lawrence Letter just

tell them to send their email address to info@davidowlaw.com and I’ll add them to the list!

As always, please send your questions in! If you are thinking about it, others are probably too, so my answers will no doubt help you and many others.

Let’s stay connected. Stay safe!