Drafting Income-Only Trusts for Medicaid Eligibility and Tax Planning

Description

As the American population continues to age, many families struggle with planning for long-term care. An 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 precise Medicaid requirements to include the look-back periods.

Income-only trusts also provide for tax benefits. Counsel will learn essential 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 guides counsel to effectively structure income-only trusts for purposes of long-term care and tax planning. Specifically, the panel will provide techniques on how to use income-only trusts to maximize Medicaid eligibility and structure it as a grantor trust for tax benefits.