Wednesday, January 11, 2012
Can my parent set up a trust to receive the distribution from an IRA?
my parent is turning 59.5 next year. she has no income and only a minimal hmo for insurance. she has virtually no savings but she has 15k from an IRA that's been sitting untouched for almost 10 years. she wants to apply for medicaid next year, but the IRA distribution may preclude it if she shows income on her tax returns. so, instead of her receiving the IRA distributions individually, can she: a) have it distributed to another individual; or b) have it distributed to a trust of some sort (i.e. some vehicle that will not affect her medicaid application)? if yes, what kind of trust? who should i talk to in order to get one set up for her. thanks.
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