| You can still help the family…read on:
READER QUESTION:
Hello Mr. Davidow,
May the Trustee of a Medicaid Asset Protection Trust make distributions and/or gifts to the Grantor’s children (if the trust specifically authorizes it) without defeating or somehow violating the trust? As always, I value your time and expert advice! Thank you!
MY RESPONSE:
YES, but only if the trust is drafted that way….and all of mine are drafted that way. Having said that, it would be better to wait until you have gotten through (or mostly through) your 5-year look-back. Why, you ask? Because, if you don’t make it through the five-year look-back, it may be advantageous to revoke the irrevocable trust and return ALL the money. The problem is that you may not be able to return all the money if you paid out some or all of the money to the children. So be careful and perhaps talk to us before you start gifting money from the trust. |
