A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Wednesday, March 09, 2005

Medicaid and Ethical Behavior

I just read an article in the latest issue of Wealth Manager by Nancy Rowland about a financial planner who has a son with cerebal palsy and is legally blind. Anyway, the article goes on to show how this financial planner set up a special trust so that her son would qualify for Medicaid should something happen to her and her husband.

To qualify for Medicaid, a disabled person can have no more than $2,000 in assets. This means that most people would have to spend all of their own resources BEFORE they could apply for Medicaid. A way around this is to set up a special needs trust, which then allows the assets to supplement Medicaid.

Although this is legal, I don't think it is ethical. I'm curious to know what my readers think.