Medicaid Planning & Testamentary Trusts

Testamentary trusts are trusts created under a will.  The Medicaid rules provide a special “safe harbor” for testamentary trusts created by a deceased spouse for the benefit of a surviving spouse.  The assets of these trusts are treated as available to the Medicaid applicant only to the extent that the trustee has an obligation to pay for the applicant’s support. If payments are solely at the trustee’s discretion, they are considered unavailable.

Therefore, these testamentary trusts can provide an important mechanism for community spouses to leave funds for their surviving institutionalized husband or wife that can be used to pay for services that are not covered by Medicaid.  These may include extra therapy, special equipment, evaluation by medical specialists or others, legal fees, visits by family members, or transfers to another nursing home if that became necessary.  But remember that if you create a trust for yourself or your spouse during life (i.e., not a testamentary trust), the trust funds are considered available if the trustee has the ability to use them for you or your spouse.

Plan Now, Consult a South Carolina Medicaid Planning Lawyer in Spartanburg & Greenville SC

Our Medicaid planning attorney can assist you in developing a custom-tailored strategy to enable you to qualify for Medicaid benefits to pay for long term nursing home care while preserving your assets.  Don’t wait to plan, contact an estate planning attorney at the McQueen Law Firm to discuss your Medicaid planning options and requirements today at 864.585.5021 or online to schedule an appointment.

McQueen Law Firm | “A Trusted Partner” | Serving the State of South Carolina Since 1985 | Spartanburg County | Greenville County | Anderson County | Cherokee County | Union County

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