State Court Holds Discretionary Trust is an Asset for Medicaid Eligibility

Elma Gsellman formed an irrevocable discretionary trust and placed most of her tangible personal property within the trust. The Ohio Department of Job and Family Services denied her application for Medicaid benefits, because the agency argued that the assets placed within the trust constituted available assets for Medicaid eligibility. The total amount available assets that were placed within the trust set her above the Medicaid limitation.

In Gsellman v. Ohio Dept. of Job and Family Services, the Ninth District for the Ohio Court of Appeals held that the assets within an irrevocable trust should be considered an available asset because the trust could make payments to Ms. Gsellman when she wanted. The court further rejected the argument that the trust was not an available asset just because it was created to prevent payments Ms. Gsellman should she become incapacitated.  

See Discretionary Trust Is an Available Resource in Medicaid Eligibility, ElderLawAnswers, May 1, 2012.