Elder Law Answers
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Read moreCan a Medicaid Applicant Stop Receiving Income From a Trust?
- July 15th, 2015
Q
My mom recently became a resident of a nursing home and is hoping to qualify for Medicaid. She has had a trust set up for more than five years for her home and also some stocks and bonds. She is receiving dividends from the stocks and bonds in the trust. Can she stop receiving the dividends and have them reinvested into the stocks and bonds in the trust and not have to report that as income to Medicaid?
A
To start, we strongly recommend that you go back to the attorney who drafted the trust or another elder law attorney in the state where your mother lives. The answer to your question may depend on the terms of the trust and on state law. In addition, sometimes either state law or the state’s interpretation of its own laws change over time. To find an attorney near you go here: http://www.elderlawanswers.com/elder-law-attorneys.
That said, if your mother has been receiving the income from the trust, then it appears she has this right under the trust document and that right will continue. She will have to keep receiving the income and report it to Medicaid.
Local Elder Law Attorneys in Ashburn, VA
Jeffrey Hammond
Hammond and Associates, LLC, Elder Law, Estate Planning, Wills, Trusts, Probate
Bethesda, MD
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Margaret O'Reilly
Margaret A. O'Reilly, PC
Margaret A. O’Reilly is an estate planning and elder law attorney with over thirty-five years of legal experience. Attorney O’Reilly graduated from Duke University with a degree in psychology, and received her law degree from Northeastern University School of Law in Boston, Massachusetts. For over 15 y...
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Samantha Fredieu
Hale Ball Carlson Baumgartner Murphy PLC
Attorney Samantha Simmons Fredieu is an associate at Hale Ball. Ms. Fredieu graduated magna cum laude from Vermont Law School where she was the symposium editor on the Vermont Law Review, a production editor on the Vermont Journal of Environmental Law, and a member of the Moot Court Advisory Board. She has clerked for...
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Jeffrey Hammond
Hammond and Associates, LLC, Elder Law, Estate Planning, Wills, Trusts, Probate
For Jeffrey Hammond, the practice of Elder Law is personal. Jeff’s many years of experience in law and in business did not prepare him for the crisis he faced in 2005 and 2006 when his father suffered a stroke and both of his parents suffered from dementia and other medical problems. At that time, Jeff began an i...
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