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When a Medicaid applicant exceeds Medicaid’s asset limitations, a planning strategy that can help the applicant meet the limitations is a Medicaid Asset Protection Trust. An established trust can help protect the applicant’s assets from being counted against him or her for Medicaid eligibility purposes. With a Medicaid Asset Protection Trust, an ineligible applicant can essentially become eligible and receive needed nursing home or long-term medical care.

An Experienced Cleveland Attorney Can Bring You the Proficient Assistance You Need and Deserve

Deciding whether the Medicaid Asset Protection Trust is the right step for you or a loved one to take can depend on a variety of factors, including what funds are available for the medical care, the relationship with the intended beneficiaries, as well as timing. It is important to understand that every case is unique and should therefore be treated as such. In order to understand what plan works best to achieve your goals, consider obtaining the support of an experienced Ohio trust attorney today.

Alex Carr Law, LLC has many tools and resources at their disposal to help their clients qualify for Medicaid benefits, such as long-term medical care expenses. With the right plan set in motion, clients can benefit from the protection of their assets. Alex Carr Law, LLC examines each individual situation and helps all clients implement a plan that makes sense for their unique situation. To obtain a complimentary consultation with Alex Carr Law, LLC, consider calling (330) 562-5951 or complete the confidential contact form here.

Medicaid Asset Protection Trusts Are Important

When it comes to Medicaid eligibility, it is important to understand that not every trust is the same. For example, certain living trusts and other types of family trusts do not protect assets from Medicaid since their language allows for the trust to be revocable. In some situations, the trust allows for the assets to be used toward long-term medical care costs. With other types of trusts, the assets would need to be used first in order for the applicant to meet Medicaid’s eligibility requirements. With a planning strategy such as a Medicaid Asset Protection Trust, an applicant can qualify for Medicaid without first having to spend their money.

How Does a Medicaid Asset Protection Trust Work?

To better understand how a Medicaid Asset Protection Trust works, it is important to first understand the legal language used with these trusts. First, the individual who creates the trust can be referred to as a trustmaker, settlor, or grantor. The manager of the trust is referred to as the trustee and he or she has control over the assets and property in the trust. Although trustmakers and their spouses cannot be trustees, their adult children as well as other family members can. These individuals have an obligation to abide by the rules set in the trust, as these rules can be extremely specific.

Other involved parties are beneficiaries, who are those who will ultimately benefit from the creation of the trust once the trustmaker has passed away. To make the trust exempt for Medicaid eligibility purposes, the principal beneficiary has to be a person other than the one who created the trust. Since trustmakers have access to the assets in the trust, Medicaid would consider the trustmaker as having the ability to pay for his or her long-term care costs. Additionally, the assets have to be in the trust for five years before applying for Medicaid benefits to receive full asset protection.

Medicaid Asset Protection Trusts have to be created as irrevocable trusts in order to be considered exempt from the asset limitations established by Medicaid. An irrevocable trust essentially means that the trust cannot be altered, canceled, or modified after its creation. After the assets have been placed into the trust, the trustmaker will no longer have direct access to them.

Schedule a Complimentary Consultation With a Knowledgeable Cleveland Attorney Today

Advance planning is the best course of action when it comes to receiving Medicaid benefits. Although a Medicaid Asset Protection Trust is a great tool for many, it is not always suitable for everyone. For instance, when a person is in need of Medicaid within a short period of time, creating a Medicaid Asset Protection Trust may not be the best option. There are, however, other types of planning strategies a person can use when Medicaid Asset Protection Trusts are not available.

If you are interested in setting up a Medicaid Asset Protection Trust or require information about other plans of action, consider obtaining the support of an experienced elder law attorney. The rules and regulations surrounding Medicaid Asset Protection Trusts in Ohio are subject to change. Obtain the legal support of a qualified attorney to ensure proper and legal planning.

Alex Carr Law, LLC is passionate about helping families preserve their property and assets under the least amount of trouble and time. The firm offers complimentary consultations to all seniors as well as their adult children. To learn more about Medicaid Asset Protection Trusts, consider calling (330) 562-5951 or complete the online confidential contact form here.