(Warning: Typos Intact, Not Legal Advice)

Should I put my house in a supplemental needs trust?

50 year old never married no children. I’m on income based Medicaid that I cannot lose for health issues. My family is gifting me house with no mortgage (not an inheritance). I’m pretty sure the Medicaid asset limit is 30k but I believe I am allowed to own a home as long as I live in it. Aside from the Medicaid payback provision after I pass, what are the pros and cons to putting into an snt versus not?

Answer: Your family should not gift the house directly to you. Instead, they should establish a trust for you, such as a residence trust, where you can be a co-trustee but not hold full ownership of the property. A good approach might be to have a small portion, such as a 1% life estate, in the property that you’re receiving from your family members.

Receiving the house directly and then attempting to resolve the issues afterward is generally not advisable. If you receive the property through a trust, many potential problems are mitigated. You can benefit from tax advantages and avoid complications.

I recommend contacting an elder law attorney who specializes in these matters to guide you through the process.