A Medicaid asset protection trust allows you to protect wealth that you own so that the wealth does not have to be spent on nursing home care. Many seniors end up needing to go into a nursing home either temporarily or permanently when they get older. The costs of this care can be more than $100,000 per year and the care is not typically covered by an insurer. Medicaid will pay for the care for people with low incomes and few resources, but you do not want to have to impoverish yourself to get Medicaid coverage. An asset protection trust means you won’t have to.
The Law Offices of James A. Miller, P.C. can provide assistance in determining if you need a Medicaid asset protection trust and, if you need such a trust, can aid you in trust creation. Give us a call to find out more about how a Medicaid asset protection trust works and to create a legally valid trust document that keeps your family’s wealth safe and secure.
How Does a Medicaid Asset Protection Trust Work?
A Medicaid asset protection trust is created to try to ensure you do not have to sell property and spend money you have saved before you can qualify for Medicaid to pay for nursing home care.
In Massachusetts, there are strict limits on resources that a person is allowed to own and still be eligible to receive benefits through the state’s Medicaid program. The 2016 Senior Guide to Healthcare indicates that the maximum limit of resources that a senior can have and still qualify for Medicaid coverage is just $2,000. If you have above this amount of countable resources, you won’t be able to get Medicaid benefits until you’ve spent wealth and even sold property.
Not being able to qualify for Medicaid is a problem because you likely are going to have no other source of payment for nursing home care if you must be admitted to a nursing home. Medicare, Medicare advantage plans, and other private insurance providers will pay for nursing home care if you must get skilled services, like changing bandages following a surgical procedure. However, this coverage is available only for a stay of limited during in a nursing home.
There is no payment at all, for any length of time in a nursing home, if you are admitted for nursing home care simply because you are old or sick and cannot live alone any more. For this type of routine care, you will not be able to get Medicare or your insurer to pick up the bills. With no coverage, your life savings could be quickly spent on high nursing home bills. You need to try to qualify for Medicaid right away to make certain that this does not happen.
A Medicaid asset protection trust makes that possible by allowing you to transfer the ownership of your assets into the trust. Since the trust owns the wealth and property, you are no longer the legal owner and the assets that are held within the trust are not going to be considered countable resources for purposes of determining if you can get Medicaid to pay for nursing home.
You need to make certain that you create the right type of Medicaid asset protection trust and that you fund it appropriately. You will not be able to protect your assets by creating a living trust, which still gives you substantial control over the wealth held within the trust. You need to create an irrevocable trust and follow the proper formalities for ensuring your assets are no longer viewed as belonging to you.
The Law Offices of James A. Miller, P.C. can provide you with assistance with the creation of your Medicaid asset protection trust so you can keep your wealth safe.
Getting Help from A Medicaid Planning Lawyer
The Law Offices of James A. Miller, P.C. will assist you in the creation of a Medicaid asset protection trust. We can offer you advice on Medicaid eligibility guidelines within the state of Massachusetts so you can make an informed choice on whether trust creation is something that you should do. We also assist in the creation of your trust document so you can rest assured your wealth will be protected.
To find out more about the importance of Medicaid planning and about what should be included in your Medicaid plan, download a free estate planning worksheet. You can also give us a call at 866-370-3888 or contact us online to get personalized advice from a Worcester Medicaid planning lawyer. Give us a call today to learn more.
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