| Perhaps I can straighten out some confusion…Read On:
CLIENT QUESTION:
I was reading Lawrence’s latest Listen to Lawrence Letter (Tuesday, 9/3/24 Vol. 5, Issue 275) and I could swear that he has ALWAYS advocated for a second trust when items need to be added to an existing trust. Am I completely wrong?
MY RESPONSE:
You are INCORRECT because of the word always. I do not ALWAYS suggest a second trust. I USUALLY suggest a second trust.
My prior response simply said that IF you made a SECOND transfer into the irrevocable Medicaid Trust, then the first and second transfers will have two different look-backs. However, I did not say that the second transfer into the trust was a good idea in every case. Most often I would create a second trust for the second transfer. I do this because if we need Medicaid during the second look-back we may (or may not) taint assets from a prior transfer that are safe because the first look-back is over.
However, if the client wants to take the risk that they can get through the second look-back without needing Medicaid, then adding assets to the original trust is an option. Got it? |
