My father created an Irrevocable Trust (with multiple assets and properties in it), where I (his son) am the Trustee; but in looking it over I noticed a potential issue: it says he has a Limited Power of Appointment (to add/remove Trustees, Beneficiaries, etc.), which, to me implies a level of “control” over his assets (or countable assets?).
Because the Trust was primarily setup for Medicaid (5-year look back), I’m concerned this still essentially gives him control over the contents/assets in the Trust.
My understanding is, to best qualify for Medicaid the Grantor needs to have no/limited assets.
My question is, are the contents of the Trust at risk because my father, the Grantor, has a Limited Power of Appointment, aka “control” (albeit limited) over the Trust? Does this disqualify him from Medicaid and does the Trust need to be re-written and start the clock all over again?
ANSWER BY MARGARET CROSS-BELIVEAU:
Limited power of appointment is an allowable power when applying for long term care benefits in Massachusetts. In New Hampshire, it is not. It all depends on which state your father enters the nursing home.
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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.
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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.