http://www.paestateplanners.com/ If you are considering creating an irrevocable Medicaid trust as part of your elder law plan, it is important that you understand the income tax implications associated with this type of trust. Watch this short video to learn more.
While there are numerous benefits of having an irrevocable Medicaid trust, there are also many things that will need to be done upon creating the trust. For example, you will need a new tax ID number for the trust, all income and expenses related to the trust will need to be reported to the new tax ID number, and a good accounting of all income tax related activities will need to be maintained in order to properly file federal and state income tax returns for the trust each year.
While this may sound like a large task, our elder law and estate planning lawyers can help navigate you through the process and even set up the new tax ID number for you. Additionally, we can provide you with several options for how income can be taxed and how the trust can be structured to maximize benefits and protect your assets. For help creating your irrevocable Medicaid trust or for other elder law planning questions, contact attorney Doug Kaune at Unruh, Turner, Burke & Frees at 610.933.8069 or contact us online at http://www.paestateplanners.com/contact.cfm.