Estate planning

[Don Plumley]

We set these up back in 2001, Bypass trust, POA, Wills. Our major assets are titled to the trust. Probably about $2K back then. This lasted until two years ago, so less than $200 a year. We did a refresh with the kids legally adults, only about $1K.

I had a cool idea that our attorney put into the amended trust - she really liked it. If we both die, we instructed the Trustee to give the kids a meaningful windfall - pure fun money - with the instruction that they go spend it on travel, some sort of adventure in our memory. This way they are not focused on "I wonder when the rest of the estate gets divided up." Naturally we still have a trustee so if the kids would use the money in "not good ways," she could wait until distributing, but otherwise controls the distribution over time to make sure it does not become repurposed into hookers and blow.

[MRM]

Originally Posted by Scooter

I think you are talking about Medicaid look back. Medicaid look back period is five years from the date of application for Medicaid benefits, and any gifts or transfers made within that five year period are subject to penalty.

Correct. I was thinking of the five year Medicaid look back. It is five years, not three.

[Porsche-O-Phile]

Wd, the whole point is that a properly set up trust does not "shelter" assets - it legally transfers them to other parties (trustees) out of your control. They are no longer your assets and you don't get to say how they're used or otherwise control their disposition. That's the whole point and that's why it was set up this way.

I'd knock off the feigned outrage at those who know the system and its limits and simply seek to recoup some of a lifetime's worth of extortion by the government. How about focusing on the things that matter - chronic government overspending, chronic abuse of the system by those who contribute and produce absolutely nothing... Not those simply looking to provide for their families or (god forbid!) actually decide for themselves where THEIR money will go.

If you don't like the laws, write your congressman and ask them to change them. Trusts exist for a reason, so do Medicare "look backs". So do all kinds of things. I see no harm whatsoever in playing within the rules and successfully making decisions to avoid third party confiscation of a person's lifelong earnings, nor do I see any harm with trying to starve the government beast by doing everything possible to avoid its confiscatory seizures of O.P.M. to fund its chronic mismanagement and politically-motivated corrupt appropriations decisions.

[Scooter]

Originally Posted by Porsche-O-Phile

Medicare "look backs".

I don't have a comment about your statement.

I just want to make sure factual information is correctly stated. Medicare does not have a look back period, since all those that contribute are eligible (see your paycheck). Medicaid is need based, so it has a look back period for penalty determination. This is a well-know confusing point that I wanted to make sure is properly understood.