Preparing for future healthcare needs is something many of us prefer not to think about, but it can make all the difference in protecting your financial stability. Medicaid can help cover the high costs of long-term care, yet many worry that they’ll have to spend down their assets to qualify. A Medicaid trust offers a way to secure the care you may need without losing control of your hard-earned assets. With the right approach, you can plan ahead and preserve your financial legacy. At Kallio Law Firm, LLC, we can guide you through the process of setting up a Medicaid trust, ensuring your assets are protected while you qualify for the care you need.
How Medicaid Trusts Work
A Medicaid trust, also known as a Medicaid Asset Protection Trust (MAPT), is a legal tool that allows you to protect your assets while still qualifying for Medicaid benefits. When you transfer assets into this trust, they are no longer considered part of your estate for Medicaid purposes. This means Medicaid won’t count those assets when determining your eligibility for long-term care coverage. However, it’s important to note that a Medicaid trust is irrevocable, meaning once assets are placed in the trust, they cannot be taken back or used directly by you, and the trust’s terms cannot be changed. Income generated by the trust must go toward your care.
Medicaid also has a five-year “look-back” period, which means any assets transferred to the trust within five years before applying for Medicaid could still be counted. That’s why it’s essential to set up a Medicaid trust well before needing care. Once the look-back period ends, the assets in the trust are protected and can be used for care without jeopardizing Medicaid coverage.
Types of Assets That Can Be Protected
Various types of assets can be placed into a Medicaid trust to help protect them from being counted toward Medicaid eligibility. Common examples include your home, savings accounts, investment accounts, and personal property like valuable collectibles or jewelry. While these assets are no longer under your direct control, they can still benefit your family or heirs in the future. Each type of asset may require careful consideration when transferring to the trust, and at Kallio Law Firm, we ensure that the process is done correctly to safeguard what matters most to you.
Benefits of Establishing a Medicaid Trust
Establishing a Medicaid trust provides several important benefits for individuals planning for long-term care. One of the main advantages is asset protection. By placing assets into the trust, they are shielded from Medicaid’s asset limits, allowing you to qualify for care without having to spend down everything you own. Additionally, a Medicaid trust allows you to preserve significant assets like your home, ensuring they can be passed down to your family. This type of trust also helps secure your future care while preventing loved ones from having to deplete their own resources to cover expensive healthcare costs.
Steps to Setting Up a Medicaid Trust
Setting up a Medicaid trust involves several key steps to ensure it’s done correctly:
- Consult with an attorney: It’s important to seek legal guidance to make sure the trust complies with Medicaid rules.
- Identify which assets to include: Decide which assets, such as your home or savings, you want to protect.
- Draft the trust document: Work with your attorney to create the trust agreement, ensuring it’s irrevocable.
- Transfer assets into the trust: Officially move the chosen assets into the trust to protect them for Medicaid purposes.
Contact an Experienced Ascension Parish & Prairieville Medicaid Trusts Attorney
At Kallio Law Firm, we understand the importance of protecting your assets while ensuring you receive the care you need. We guide you through setting up a Medicaid trust, making the process as straightforward as possible. With our experience, we’ll help you preserve your financial legacy for your loved ones. Contact us today to learn how we can assist with your Medicaid planning needs.
