Using Trusts for Medicaid and Benefits Planning - Module 4 of 6


Question 1

Geraldine, age 68, owns a $300,000 vacation home and earns $2,400 per month in social security and pension income. Is she likely to be eligible for Medicaid services?

Question 2

Bobby, age 72, owns $700,000 in cash assets. However, he earns no income at all. Is he likely to be eligible for government subsidized health insurance?

Question 3

Which of the following is true of Medicaid under the Affordable Care Act?

Question 4

The ABC trust, funded by Joe, gives the trustee “complete and absolute discretion to distribute trust income for Joe’s or Joe’s children’s healthcare, if the trustee deems it necessary.” The principal can only be spent for Joe’s children. Which of the following is correct?

Question 5

Which of the following is true of Medicaid trusts, in general?

Question 6

Georgina owns a home that is worth $300,000 with no mortgage. She owns no other assets. She tells you that she heard that she shouldn’t bother putting the house in trust because she wants to live there for the rest of her life. Is Georgina correct?

Question 7

Georgina owns a home that is worth $900,000 with no mortgage. She owns no other assets. She tells you that she heard that she shouldn’t bother putting the house in trust because she wants to live there for the rest of her life. Is Georgina correct?

Question 8

Christopher, age 84 lives with his daughter, Donna, who is her sole heir. Would you advise him to put his house into a Medicaid Planning trust?

Question 9

Wanda is a potential beneficiary of a Medicaid planning trust established by her father, Bill. The trust allows the trustee to pay for Wanda’s “education and housing” expenses, at the trustee’s discretion. Should this trust adversely impact Wanda’s ability to receive Medicaid assistance?

Question 10

Sue, aged 71 comes to your office for Medicaid planning. She is uncomfortable with the idea of giving up control over her assets and so she is considering purchasing a long term care insurance policy. Which of the following pieces of advice you can give her would be most accurate?