Legal Question in Elder Law in North Carolina

Re: Income-Only Trusts

The answer will vary upon other factors, but generally the answer would be yes, provided there is a trustee who can serve and there is no immediate need for Medicaid. The primary reason for doing this would be to avoid being out of money and out of options, since once a person qualifies for Medicaid they must get by on only $30/month and its tough to have much dignity at $1 per day. This type of gift would however make the person ineligible for Medicaid for 25 months if they need Medicaid within the next 5 years. Accordingly, if it is likely Medicaid will be needed within that time frame, you should consider other planning options.

This is not legal advice and does not create an attorney-client relationship. More information about Medicaid planning in North Carolina is available at www.elderlawfirm.com