ESTATE PLANNING FOR THE DISABLED

(LIAF) Unless proper planning is done, if a person receives assets from an inheritance and is also receiving Medicaid, the assets will first reimburse Medicaid for the cost of care already expended on that individuals the half. If there are still funds remaining, they'll have to be spent down until he individual has assets that meets the Medicaid guidelines. However if one incorporates an Escher trust, the assets may be preserved for the disabled person and be managed by a trustee for the benefit of such person after death of the testator. Since the assets never bowl long to the disabled person, they therefore do not disqualified the disabled person from receiving governmental benefits. The will states that the trust assets will not be available to pay for basic maintenance or medical services. The trustee has no right to use the money for anyone else except the disabled person-with a proviso that the assets are to be used only for items that the government benefits will not cover. The will uses language that authorizes the trustee "to provide for the needs of the disabled person over and above the basic maintenance, support, and medical, Dental, psychiatric and it psychological care provided or paid for by any local, state of federal government or agency or Department thereof." The statutory language shall indicate that it is the testator's intent that neither the income nor principal of the trust is to be considered the disabled persons income or assets for any purpose, including the determination of income or assets as stated in any regulations of any local, state or federal government or agency.

It is not my intent here to provide legal direction nor to indicate any unethical activity in regards to deception for the use of Medicaid. It is just proper, fundamental planning for unique situation that should be considered if you want a provide a better life for disabled loved one.