| Like decanting a fine wine…..read on:
CLIENT QUESTION:
Good morning – Will decanting a Medicaid Asset Protection Trust to remove an acting trustee restart the 5-year look-back period for Medicaid?
MY RESPONSE:
Decanting is a concept we have not talked about here. In English, it is when we pour the assets from one trust into another trust to obtain more favorable trust language, including changing a trustee. In such cases, as long as the first trust was an effective Medicaid trust, the transfer from one trust to another will NOT restart the look-back period. Only when you transfer from your name to someone else (including a trust), does a look-back result.
Having said all this, all of my Medicaid trusts reserve the right for you to change the Trustees so decanting would never be necessary…and a simple change of trustees would also NOT restart a look-back period.
I hope this helps. |
