Can my parents put inheritance money into my trust in a separate account that they also can access?

They need to a NAELA level of elder law atty, the situation is pretty complex.

So it's around 80K that you are thinking could go into a trust? That's it, right?
To me, it's just not enough $ to do a trust. Trusts have costs and need some sort of steam of income to pay those costs, otherwise they will defund. Based on what you wrote they flat do not have the $ to do a trust in my experience. Some financial advisors won't even start trusts unless there is at least 800K. Not 80K but 800K.

And even if you found someone to do a trust for 80K, they probably would need to make the trust either to be a special needs trust or other Medicaid compliant (so if they die all funds left revert to the state, you or other family cannot be beneficiary) to get it ever past Medicaid review.

One bad situation - like a major fall or serious repairs to house - and they are going to just plow through that 80K. 80K is maybe a 1/2 yr of private pay if both of them need to go into a NH. If they are having issues with $ right now due to medication costs & property upkeep, they are going to use all the 80K in short order. And unless they are willing to have you become their DPOA and get their finances & straighten out property ownership, and follow the guidance the atty. gives, they will never qualify for Medicaid or other "at need" programs.

Based on what you wrote, they own a home & a rental property & an office building and this will stop any Medicaid applications cold unless things are done this summer to change all ownership and they do not apply for Medicaid till Fall, 2022.

Plus that $ 400 rent to them from property they gave(?) to your sister poses all sorts of ?'s as to whether it was an actual transfer of ownership to her. When an application is done, they will more than likely have to provide years of bank statements. $400 each month will show up. If she owns it, why is the rental going to parents??? I'm going to bet that your folks are holding what is basically a land contract with her that the rental $ is payment towards the sale. If so, & that is also what was done with the property to your son (sold on contract to your son but he walked on it, is what is your post reads to be) then both properties are still assets of your folks as under land contracts the seller retains the title to the property until the balance is paid. So if these were land contracts, did an real estate atty do it for them so all proper for what the security agreement needs to be & filed properly?

Also the inheritance back in 2013 or 2014 would have been reportable as a payment to them. Whomever was executor would probably have had to file a distribution of assets document with probate court and likely have sent out a letter to Dad as to the validity of his heirship and the amount to be paid with a signature page to be returned to executor. Probate is all open court and the amount to the penny can easily be found out. Unless they went out an bought a new Tesla & a Jag that used all the $, there will be a long trail of where it went. If any of it was gifted to others, that too will be an issue for Medicaid. To me, someone will have to be a DPOA for them that an recreate their finances for the past decade and then have them do whatever to get clear defined ownership of all the properties and then sell whatever at FMV or restructure the land contract to be enforceable. Not a DIY project, they need a really good atty to work through and they pay for all legal fees & costs.

Daddysgirl321, no W-2s but you have records from social security that are in state and federal database, records of pension for Dad that are in state and federal database, and if the contract was written for land but nothing ever happened at the county courthouse with deed, it's still in Dad's name. No one can tell you what they qualify for because it's such a mess at this point with who has assets in whose name and the whole outstanding tax issue. Have they been paying property taxes if Mom didn't bother with the income taxes? do they have outstanding state filings as well as federal? The office building/storage will have to be sold or used for business. You will have to clarify on the rental income who got rental and who paid expenses, etc. You need both a lawyer and an accountant to help you sort it out. If you want to change your post, contact the admins of the site (info is at bottom of page) and they can help you - super nice people. Please consider the long term needs for care on your parents - dementia doesn't get better. Hope for the best, plan for the worst.

Thank you all...I don't think I can change my post, I just tried...I didn't think there would be anyway someone could know who or where this was coming from. I put numbers on there to see if anyone knew if they would qualify with what they had. Dad has been retired for 10 years so no w2's.

Both rental properties have not been in Dad's name for more than five years so the rents I think will be regarded as gifts from the official owners and  are low enough not to affect property owners of record.
Not filing taxes for ten years may or may not be a problem if their income has been the same during this time. if they have not paid any taxes during this time there is no refund there to come back. Now they could owe something.
If you are hoping to apply for Medicaid for both of them their assets will all have to be liquidated. if only one needs sheltered accommodation most or all of the assets will be available to the non institutional spouse to keep.
If they are still able to take care of their own basic care the best solution might be to sell their home in their present location and rent close to you or buy if that is feasible.If available in your area there may be subsidized apartments available.
Having them move in with you is a very big decision to make. If you read through many of the posts on this forum it will give you an idea of the problems you may face.
I agree with CM that it is a bad idea to post detailed information on an open forum.
Go and see an elder care lawyer and find out exactly what the rules are in regards to your parents. It is a huge worry but once you know the facts it will be much easier to make sensible decisions. One thing is certain there is no way to hide assets from Medicare their tentacles are long and patient.

Daddysgirl I can't fault you for clarity, but I think it might be a good idea if you rephrased your question on a new thread and perhaps didn't quote actual numbers and quite so much detail about your parents' assets? - just in case somebody in your area could figure out from the assets who your parents might be, for example.

I'm sure other posters will be able to suggest good places for you to seek advice, and it is good that you have all this information to share with a professional advisor or social services in due course.

The tax issue sounds like a worry :/ - but getting to grips with it has to be the only way. Best of luck, please do repost.

Go see a lawyer that is experienced in Medicaid and elder tax planning. You have a lot of things to go through, starting with unfiled taxes. You cannot qualify for programs if you are not in compliance with federal law. They may be due money back, they may owe. You need professional help paid from parent assets, not yours. Documents not filed with county have not transferred. There is a five year lookback on gifting etc. so you need expert help.