Medicaid Asset Protection Trusts are an effective and valuable estate planning strategy that aims to meet Medicaid’s asset limitations. When an applicant has an excess of assets, these Trusts can allow the applicant’s assets from being counted against his or her Medicaid eligibility. With a Medicaid Asset Protection Trust, Medicaid applicants can receive the proper care they need in a nursing home or at home.
Protect Your Hard-Earned Assets
It takes a lifetime of earnings to build assets and it is important to take necessary steps to protect these assets. Whether a person is interested in planning for family inheritance, wealth preservation, or long-term care planning, speaking to a well-versed attorney can help you.
At Alex Carr Law, LLC, the firm can help you draft the plan that will protect your interests. The firm has the knowledge and experience needed to fully understand legal ramifications in a wide range of circumstances in estate planning; therefore, the Alex Carr Law, LLC can effectively guide you through solutions that can avoid unnecessary costs and delays. Consider contacting the firm today to schedule a complimentary consultation.
The Importance of Medicaid Planning Trusts
Although every state has its own Medicaid program that adheres to federal guidelines, each state sets its own separate rules within those guidelines. For the most part, asset limitations for the purposes of eligibility for an older applicant for long-term care are $2,000. This asset restriction, however, can be lessened or amplified depending on the circumstances of the applicant.
Some assets of higher value can sometimes be considered exempt, such as wedding rings, vehicles, and the applicant’s primary residence. Still, far too many applicants continue to find themselves being unable to afford the cost of medical care. Through a Trust, an applicant in need may be able to qualify for Medicaid benefits.
How a Medicaid Planning Trust Works
Generally, Medicaid Trusts allow grantors, those to whom the assets belong, to transfer their assets into what is known as an Irrevocable Trust. Upon the grantor’s death, his or her assets will then be distributed in accordance with the instructions provided in the Irrevocable Trust. While the grantor will continue to have access to his or her assets, he or she will no longer have control over them.
With this said, assets cannot be transferred into a Trust weeks or months prior to applying for Medicaid benefits. There is a multi-year period for which Medicaid will require these assets to be set in the Trust in order to be eligible for benefits.
Benefits Provided By Medicaid Trusts
Unlike a majority of long-term healthcare insurance, Medicaid Trusts do not require massive up-front costs to set up. Frequently, long-term healthcare insurance will only grow more expensive the older the applicant gets. These insurance policies also usually carry restrictions that will not guarantee a person will be covered. For this reason, Medicaid Trusts are the best route to take when it comes to protecting assets and saving money.
When a person is applying for Medicaid, he or she will be required to spend down his or her assets. With the right Trust, the applicant will continue to be able to hold on to his or her assets while also getting the benefits he or she needs from Medicaid.
Finally, a Medicaid Trust will work to protect assets to ensure these are distributed accordingly. Sadly, unless these assets are protected through a Trust, the concealment of assets is considered fraud and it can have serious repercussions. With the right Trust set in place, Medicaid applicants can obtain the protection they need in a fiscally responsible manner.
Prepare For Your Future With the Right Legal Support
Roughly three-quarters of Americans over 65 will require some type of long-term medical care at some point. Although long-term medical care is not on everyone’s horizon at the moment, it is likely that it will be needed eventually. To prepare for the inevitable, it is important to begin taking proactive action – speak to a well-versed attorney who can help you find the right course of action.
Alex Carr Law, LLC is a professional estate planning law firm with exceptional expertise in the field of Wills & Trusts. If you are unsure whether Medicaid Asset Protection Trust is the right option for you and your unique circumstances, consider obtaining the support of Alex Carr Law, LLC for support. Call or schedule a no-obligation consultation online to speak to a proficient attorney today.
