Drafting Income-Only Trusts for Medicaid Eligibility and Tax Planning

Navigating Look-Back, Grantor Trust, Basis and Gift Tax Rules

Recording of a 90-minute CLE webinar with Q&A

Conducted on Wednesday, October 28, 2015

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will provide elder law counsel in-depth guidance on using income-only trusts for the benefit of their clients’ Medicaid eligibility and tax planning needs. Our panel will discuss look-back requirements, income tax basis, gift tax rules and more.


As the American population continues to age, many families struggle with planning for long-term care. The income-only trust is a must have tool for counsel to elderly clients. This option can fulfill the nursing care and tax planning needs of clients whose assets and income disqualify them from Medicaid but aren’t sufficient to pay nursing home expenses.

Elder law counsel must be able to balance the intricacies involved in drafting and implementing the income-only trust with the very specific Medicaid requirements to include the look-back periods. Additionally, counsel must avoid transfers that could result in a Medicaid penalty period.

Income-only trusts also provide for tax benefits. Counsel will learn important techniques such as structuring the trust as a grantor trust to maximize income tax treatment. Counsel must structure these trusts so the client’s assets receive the all-important step-up in basis.

Listen as our distinguished panel provides guidance to effectively structure income-only trusts for purposes of long-term care and tax planning. Specifically, panelists will provide techniques on how to use income-only trusts to maximize Medicaid eligibility, to structure it as a grantor trust for tax benefits, and the impact of the ACA.



  1. Look-back rules
  2. Impact of ACA
  3. Drafting best practices
  4. Tax benefits
    1. Income
    2. Gift


The panel will review these and other key issues:

  • How is an income-only trust beneficial for Medicaid eligibility purposes?
  • How are the various and specific Medicaid eligibility requirements integrated in the income-only trust?
  • What are the income and gift tax benefits of the income-only trust? What are the necessary drafting techniques to maximize benefits?
  • How does the ACA affect the implementation of income-only trusts in the context of maximizing Medicaid eligibility?


Judith D. Grimaldi
Judith D. Grimaldi

Grimaldi & Yeung

Ms. Grimaldi has over 20 years’ experience as an elder law and estate planning attorney. Prior to practicing law,...  |  Read More

Kelim, Kyla
Kyla G. Kelim

Aging in Alabama

Ms. Kelim focuses her practice on proactive planning involving those in need concerning Medicaid, Medicare and Social...  |  Read More

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