To receive Medicaid or SSI, a person must have $2,000 or less in countable assets. A Medicaid payback trust can hold assets of an individual on Medicaid or SSI without them being counted towards the $2,000 permitted. However, at the death of the beneficiary the trust “pays back” Medicaid up to the amount Medicaid paid for services.
How Medicaid Payback Trusts Are Established
Generally, a Medicaid Payback Trust is established by the person on Medicaid, or their parent, grandparent, guardian or a court. The trust is funded with the beneficiaries’ own assets. For example, if a client suddenly becomes disabled, and has $100,000 in the bank, these funds can be put in a payback trust, and the beneficiary can immediately apply and be eligible for Medicaid and SSI.
These trusts can only be established for someone under 65 years of age, so we often cannot use them as a benefit for the elderly.
Medicaid Payback Trusts in Ohio
To learn more about Medicaid payback trusts in the state of Ohio and to determine if this type of trust is right for you, contact the attorneys at Solomon, Steiner & Peck, Ltd. Since 1993, we’ve been helping northeast Ohio residents develop customized plans for their future and their assets. Schedule a consultation at one of our three Cleveland, Ohio law offices to get started.