Legal Question in Wills and Trusts in New Jersey

Difficult question:

I have an irrevocable trust which says that I am a grantor and my kids are beneficiaries. They are also covered by the same trust for the rest of their life. My irrevocable trust says that me ( a settler) and by beneficiaries (after my death) may change trustees / trust protectors any time by the reason sufficient to me or to them (after my death). Why did I do it? Because my trustee/trust successor are the same age as I am. Unfortunately, I do not have close friends or relatives much younger than me. So, for my children, it's going to be a serious problem in the future : if all listed people die or got sick (or something else happens), then my children will need to change dead protector(s), or trustees and even trust successor for new, still alive reliable people. Hopefully, my children will get new reliable friends who would be good enough for trustees and new trust protector. That is why, I asked an attorney to write in my trust that each of us (me and , after my death, my beneficiaries may change trustees or/and trust's protectors.

However I was told by the Medicaid Specialist that it's going to be a problem for each of us in case if we would apply for Medicaid some day (or other types of Governmental help), since this opportunity to change trustees and protector of the irrevocably trust demonstrates that we still have a legal power of the estate in the trust. And as result, Medicaid may denied our claims. It is very important to know since I still have a chance to change my trust (it's not executed yet!). Also my beneficiary has a serious medical problem and may need to get Medicaid and other governmental help in the future. I did not know about a special need trust. I cannot afford another trust now.

What would you say about my beneficiaries' chances to be eligible for Medicaid with an irrevocable trust ( not a special need trust?

Will this statement about changing trustees and/or trust protector make my irrevocable trust not properly written for Medicaid eligibility (if needed for my daughter in the future)?

Could you please list the MAJOR REASONS WHY Medicaid would denied the claim of someone with all estate in the irrevocably trust?

I was told that Medicaid management may allow or not allow to get a Medicaid card for a person who's estate is located in an irrevocable trust. It depends on HOW THIS IRREVOCABLE TRUST IS WRITTEN. If some power will still belong to the grantor of the trust and his beneficiaries , then Medicaid will refuse to provide this trust's settler (even after 5 years of creation the trust) and his beneficiaries with the right to use Medicaid. None of attorney I have contacted has provided me with a certain answer regarding this questions. They only says: "A trust should be done properly". However I did not do my trust myself. I have paid to two attorneys to write it and to check it. As result, I spend my limit for Trust Preparation, and mu estate in the trust does not worth all my energy i have spent to get a really true information. My trust draft looks not reliable, especially for my daughter; potential ability to get a Medicaid. I would appreciate your help!

I am interested mostly for my daughter's situation after my death. And actually, there is just a small apartment and our death benefits in the trust, nothing else. Will my beneficiary be at risk to be denied from Medicaid and other governmental benefits ?

By the way, if she would not add anything in the trust's estate except our death benefits which coming directly to the trust ownership, and trust is the beneficiary of them, then should out daughter wait for five years to apply for Medicaid as well?

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