My adult daughter has a physical disability (similar to lupus or MS). She works and supports herself, except for medical expenses. Her monthly medical expenses are several times her income, and are covered in part by the Oregon Health Plan (OHP). To help her with the medical that isn't covered by OHP, I give her the income from a rental house I own.

I'd like to simplify this situation (and my accounting chores) by getting myself out of the loop. I'd love to just give the house to my daughter, but OHP would then consider the rent money as *income* to her, not assistance with medical bills as it is now.

I have arranged that after my death, a share of my assets will go into a special needs trust, the funds in which can then be used to help with her medical and not be considered income. But am I correct in understanding that this sort of trust can't work while I am alive? Is there something else I can do?

Thanks very much for any help.