What are OBRA Trusts?
Although OBRA trusts have been available for 15 years, few truly understand them. OBRA Trusts allow people to set aside assets, protecting them from consideration in a Medicaid application. This protection from consideration reduces the value of assets reported on the Medicaid application, allowing many people to qualify for Medicaid assistance that otherwise would not. Upon the death of the person creating the OBRA trust, the state receives payback for any assistance from the remains of the trust – if any funds remain in the trust. By creating an OBRA trust, a person can continue to use their assets for day-to-day living expenses, rather than pouring everything into nursing home care.
