QUESTION

Can assets such as EE bonds, and a house be transferred to a trust in order to become eligible for medicaid relief to pay for assisted living care?

Asked on Jun 15th, 2012 on Elder Law - New Jersey
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1 ANSWER

Elder Law Attorney serving Toms River, NJ
Partner at Diana L. Anderson
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A house can be placed into a special kind of trust called a "QPRT" - qualified personal residence trust.  There is a five year look back period, however.  Any asset that is transferred to a trust within five years of an application for Medicaid will not be protected, and will cause the applicant to be ineligible for Medicaid. There are ways of coordinating the creation of the trust and a potential application for Medicaid.  As for the bonds - I have never had that situation but I would think you cannot transfer them into a trust because they are owned by a person, and use that person's Social Security number.  If you change ownership by putting them in trust it would seem to be a redemption.  So you could cash the bonds in and then transfer the proceeds into a trust.  
Answered on Jun 16th, 2012 at 12:50 PM

Diana L. Anderson, Certified Elder Law Attorney This response is not legal advice and does not establish any form of attorney/client relationship

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