Supplemental Needs Trust

Discussion in 'Tips and Resources' started by outofmymind, Sep 9, 2012.

  1. outofmymind

    outofmymind Newbie

    My father is 92 & a WWII vet, in an assisted living facility for memory care. He & my mother lived there for 2 yrs prior to my mom passing away 1 month ago. The attorney wrote my mom's will so everything was in her name except for a trailer in FL (worth approx. $45,000) & all of it went into a supplemental needs trust for my dad when she passed. My dad has no access to this trust and I am the trustee. So, in essence, all my dad owns is the trailer. This was the attorney's way of making my dad possibly eligible for Medicaid in the future. The problem is that his facility doesn't accept Medicaid so I don't think that will matter.

    Can you answer the following questions?

    1. Will the supplemental needs trust need to be listed on the A&A application?
    2. Even if he receives A&A, if he does end up in a Medicaid facility, can he also receive Medicaid?
    3. We need to sell the trailer & have a current offer. If we sell it between applying for A&A & being approved, will this create a problem?
    4. If we apply for A&A & then change to another assisted living that is actually more expensive, will this create a problem with the application?

    Thank you for this wonderful site! I'm learning a lot. Guess I should have bit the bullet a while back & paid the attorney the $3500 he wanted to get the affairs prepared for A&A & file the application. It probably would have paid for itself by now.
     
  2. Marp

    Marp Jr. Member

    An attorney wanted $3500 to set up and file the A & A application? What exactly was he proposing to do?

    I ask because, legally, attorneys cannot charge for assisting you with the A & A application. If all he was going to do was help you with the application, then I believe the $3500 he wanted to charge you is against the law, and it's probably good you didn't pay him.

    If he was going to do other things...maybe it's legal, but it's questionable; if he already set up finances so that your dad would be eligible for Medicaid, I can't imagine he'd have much, if anything else he could do with your dad's finances to increase the likelihood he'd get A & A. What would he be doing that would cost $3500?
     
  3. outofmymind

    outofmymind Newbie

    This is an elder law attorney who seems to know all the loop holes, including how to make himself very rich off of it. That is why we changed attorneys but now I don't have anyone to help me figure this out as our attorney doesn't deal with A&A. His way at the time (a few years ago) was to "loan" my parents' money to one of us kids to get them in the right asset range and have our monthly "payments" go to pay their bills. This way it was just a repayment. Sounded really fishy to me and since I had kids in college, I didn't want the money to appear as my assets and keep my kids from getting scholarships or student loans. Yes, he said he wasn't allowed to charge for the application but that he wasn't charging for it, just for the preparation. He probably should be reported, it would definitely take him down a notch or two.
     
  4. vetadmin

    vetadmin Administrator Staff Member

    If the trust was set up for his care and keeping, then yes, you have to list it on the application.

    If he were to qualify for the A&A pension, and then moved onto Medicaid, he would only be able to receive up to $90 a month, and this money cannot be spent on medical expenses. Only on personal items.

    If you sell the trailer, you would need to disclose that to the VA as it will change his financial picture. You would do so by submitting a VA form 21-4138 Statement in Support of Claim.

    If you move him to another facility, you would have to inform the VA using the same form listed above. You would include with this a Statement of Occupancy from the facility and note on the VA form the increase in his care expenses.

    I am going to send you a personal email here on the forums.
     

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