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Can 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

Daniel Steven

Daniel N. Steven, LLC
Rockville, MD

Margaret O'Reilly

Margaret A. O'Reilly, PC
Herndon, VA

John Laster

Law Offices of John L. Laster
Falls Church, VA

For more information about Medicaid and trusts, click here.  


Last Modified: 07/15/2015

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