| USE OF TRUST INCOME…read on:
CLIENT QUESTION:
Can we use the income in our irrevocable Medicaid trust to pay our bills?
MY RESPONSE:
It depends. On what? It all depends upon how the trust is written. We have a choice when we create these trusts to either pay out the income to you or have it accumulate in the trust. The vast majority of our trusts accumulate the income in the trust because if you can get the income, Medicaid can get the income. So, you will have to read the trust to check out what the income section actually says…but it probably says you cannot get the income.
However, the trust may also say that the trustee has discretion to pay out the income to your children who can turn around and help you with your bills if they so choose…but they could also pay off their personal credit cards or book a cruise! 😊
I hope this helps. |
