“Long-term-care planning using trusts”

Long-term-care planning using trusts,” by Dave Strausfeld, Journal of Accountancy


Policy Suggestions

“Some clients who want to plan for the use of Medicaid for long-term care may benefit from creating an irrevocable trust, according to Elizabeth Forspan, Esq., who gave a highly rated presentation at the AICPA & CIMA ENGAGE 2023 conference titled ‘Paying for Long Term Care: Using Trusts for Planning Around Shortfalls in LTC Resources.’ The basic idea behind such planning is this: If clients transfer assets to an irrevocable trust at least five years (in most states) before applying for Medicaid for long-term care, the Medicaid agency, under its rules, will not count those assets in determining whether Medicaid’s asset ceiling is satisfied, said Forspan, a trusts and estates and elder care attorney with Forspan Klear LLP.”


LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:

Tragic to see this article in the Journal of Accountancy promoting Medicaid planning. Compare my article 30 years ago: “Planning for Long-Term Care Without Public Assistance,” Journal of Accountancy, Vol. 175, No. 2, February 1993, pps. 40-44. According to a 6/24/93 letter from the editor of the Journal of Accountancy, this article “received extremely high praise” from JOA’s Board of Editorial Advisers–50 CPA’s who evaluate all articles published in the Journal. Read the original manuscript of the article at http://www.centerltc.com/pubs/Articles/planning_for_ltc.htm.