Will Donation Fund Affect Medicaid Qualification?

by Gabriel Heiser
(www.medicaidsecrets.com)

Question:

I want to set up a donation fund for a friend's medical bills. He is 58 and doesn't have a lot of money. Will the money hurt his chances to apply for Medicaid or Medicare? Right now he's not eligible, but maybe in the future. What kind of fund should I set up at the bank? Thanks.

Answer:

Clearly this could be done via a fully discretionary trust, but the donor would incur significant legal fees to do this. I don’t know how he could do it directly via a fund at a bank. The bottom line is that if the individual has any legal right to compel a distribution of the funds (either out of the trust or bank account), then it will count as “his” asset for Medicaid eligibility purposes, which should be avoided if possible.