Will Donation Fund Affect Medicaid Qualification?

by Gabriel Heiser


I want to set up a donation fund for a friend's medical bills. He is 58 and doesn't have a lot of money. Will the money hurt his chances to apply for Medicaid or Medicare? Right now he's not eligible, but maybe in the future. What kind of fund should I set up at the bank? Thanks.


Clearly this could be done via a fully discretionary trust, but the donor would incur significant legal fees to do this. I don’t know how he could do it directly via a fund at a bank. The bottom line is that if the individual has any legal right to compel a distribution of the funds (either out of the trust or bank account), then it will count as “his” asset for Medicaid eligibility purposes, which should be avoided if possible.

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Marquette, Michigan
I just want to thank you for this site. It answered my questions. I think many people that do research on the net take it for granted and when they find what they are looking for they forget "someone put time, money, etc into providing me with this information."

Thank you!

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