How does a living trust work?


I spoke to an elder care attorney about my mother going into a nursing home. I told him I have POA, healthcare surrogate and Will with me as executor. I had concerns about my mother’s home. My sister has been caring for her in our mother’s home for 4 years. She has Alzheimer’s and it’s time for her to be in a nursing home. He advised me what paperwork to get together and that she needs a living trust where her monthly income goes into I’m assuming to pay her portion of the nursing home but why can’t it just be her bank account and why $2500 for him to set it up?


Florida is an income cap state for Medicaid. It sounds like your mother has too much income to qualify for Medicaid. In which case, a trust must be set up to capture the excess income. It will be turned over to the state after she passes away. The other part of her income will be paid to the nursing home as her patient pay amount.  Also, in Florida, Medicaid can’t place a lien on an applicant’s homestead.  The home will not be placed in the trust.

Legal Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on since each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship. A lawyer experienced in the subject area and licensed to practice in the jurisdiction should be consulted for legal advice.

Beliveau Law Group: Massachusetts | Florida | New Hampshire

The elder law attorneys at the Beliveau Law Group provide legal services for estate and asset protection planning. The law firm has offices and attorneys in Naples, Florida; Waltham, Massachusetts; and Salem, New Hampshire.

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