Drafting Income-Only Trusts for Medicaid Eligibility and Tax Planning

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

Note: CPE credit is not offered on this program

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

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Conducted on Wednesday, September 13, 2023

Recorded event now available

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Course Materials

This CLE course will provide elder law counsel in-depth guidance on using income-only trusts to enhance their clients' Medicaid eligibility and tax planning needs. They will also discuss look-back requirements, income tax basis, gift tax rules, and more.

Description

As the American population ages, many families struggle with planning for long-term care. An income-only trust is a must have 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.

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Outline

  1. Challenges of structuring income-only trusts
  2. Structuring income-only trusts
    1. Key provisions
  3. Look-back rules
  4. Tax benefits and potential issues
    1. Treatment of income
    2. Treatment of gifts
    3. Protecting assets against liability

Benefits

The panel will review these and other key issues:

  • How is an income-only trust beneficial for Medicaid eligibility purposes?
  • How are the various 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?

Faculty

Arkin, Brandon
Brandon Arkin
Attorney
Solkoff Legal

Mr. Arkin represents the elderly, the disabled and their caregivers in all facets of Elder Law including Estate...  |  Read More

Greenberg, Michael
Michael J. Greenberg
Founder
Michael J. Greenberg P.C.

Mr. Greenberg's practice includes estate planning for high net worth individuals and families, estate and trust...  |  Read More

Grimaldi, Judith
Judith D. Grimaldi
Partner
Grimaldi & Yeung

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

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