Long-term care plans are highly sought after as you get older. Medicaid allows you the flexibility to fund your long-term care with government funds to ensure you get the care you deserve. Medicaid is fruitful but not for everyone. The requirements to qualify for Medicaid can be difficult for many to meet but it doesn’t have to be.
With proper legal guidance, a Medicaid plan can be put into place that can help you significantly in the long run. A Medicaid trust can be set up for you in order to qualify for Medicaid. The basic concept of a Medicaid trust involves you transferring your assets into the Medicaid trust. Assets like retirement accounts, including 401ks, vehicles, and certain types of life insurances can be transferred into your Medicaid trust to free up the ability for you to qualify for Medicaid. Circumstances differ from person to person so be sure to contact a Medicaid planning attorney to help you see what option may be best for you.
What are the Benefits of a Medicaid Trust?
The major inherent benefit of a Medicaid trust involves being able to qualify for Medicaid. Since you are transferring your assets into a Medicaid trust, which should be an irrevocable trust, you will no longer technically be the owner of those assets, allowing you to meet the requirements to qualify for a Medicaid trust. On top of qualifying for Medicaid, a Medicaid trust can work like a standard irrevocable trust which allows you the flexibility to handle and disperse your assets to certain beneficiaries when needed. To get the most out of your Medicaid trust and to ensure it allows you to meet the Medicaid requirements, have a Medicaid planning attorney look over your situation and work together to get your Medicaid trust put together.
What is a Look-Back Period?
An important aspect of creating a Medicaid trust is avoiding the five-year look-back period put in place by Medicaid to avoid situations where a person simply opens a trust and transfers assets into it to meet the Medicaid requirement thresholds. You may be penalized if you are thought to be in violation of the five-year look-back period. In order to make sure you avoid triggering a penalty for the five-year look-back period, consult with an established Medicaid planning attorney for further guidance.
How Can a Medicaid Lawyer Help Me?
Using a Medicaid trust as a strategy can be extremely beneficial if done correctly. If done incorrectly, you may be looking at penalties that include becoming ineligible for Medicaid for an extended period of time. Israel & Gerity, PLLC can survey your circumstances and develop a thoughtful and meticulous plan to make sure you get the proper benefits to cover you way down the road.