Thus medicaid can reach any vested interest. The right to demand support from a support trust is a vested right. Discretionary supplemental needs trusts do not create vested interests in the beneficiary. Thus, medicaid cannot reach the assets in such trusts. Classification as a support trust or a supplemental needs trust is a key issue.
Classification depends on the language used by the creator of the trust.
If interest of beneficiary is discretionary or only for supplemental needs, then medicaid cannot reach. Trust assets are not available to medicaid. Beneficiary will qualify for medicaid. Creation of the trust could affect the creator's medicaid eligibility under the look-back rules. BUT, if the trust is solely for the benefit of a disabled person under age 65, then the transfer will not disqualify the creator of the trust under the look-back rules.