The goal of the plan is to establish and fund the trust with assets that are countable (unprotected)
When establishing the irrevocable trust, what powers can the settlor (also referred to as the "grantor" or "trustor") grant to the trustee, giving the trust as much flexibility as possible without jeopardizing the goal of the trust? The powers may include, but are not limited to:
the trustee's right to invest any cash assets into tax-deferred annuities; the advantage of this power is that the annuities will grow tax-deferred and 1041 fiduciary income tax returns will not need to be filed - no taxable income;
the independent trustee's right to make discretionary distributions of income to transferor's children and grandchildren;
the trustee's right to lend funds to any person, including the grantor, for adequate consideration;
the trustee's right to terminate the trust and distribute the trust assets, assuming the transferor's children all agree; the assumption is that if the transferor is receiving Medicaid benefits there may be no real reason to continue the trust.
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Krause Financial Services specializes in helping families qualify for Medicaid benefits through the use of Medicaid Compliant Annuities, and Veterans Aid & Attendance benefits through the use of various life and annuity insurance products.