| I hope this message pays dividends…read on:
READER QUESTION:
If I put any stocks or bank CDs into an irrevocable Medicaid trust, how does the trustee give me the dividends or interest from the CDs?
MY RESPONSE:
It all depends upon how we write the trust. If the trust says that you are to receive the income (dividends/interest), then the trustee will send you the income. This can be done by the trustee writing you a check for the income, making an online transfer, or the like. BUT remember, if you can get the income, Medicaid can get the income. It will be unprotected.
Most of my trusts require the income to be retained in the trust or (with your consent) paid to your children. Since you cannot get the income, Medicaid cannot get the income.
Ask yourself, do you really need the income? Do you want to protect your income? If you need more money later, will your children be generous to you?
Remember, the income we are talking about here is income from investments, not your Social Security, pension, or RMDs from retirement plans.
Every client is different.
I look forward to discussing your options with you.
I hope this helps. |
