Establishing an estate plan involves more than a will and how to distribute your assets after you’re gone. It also helps you plan how to live comfortably in your older years. Many of us worry about how we will pay for assisted living or nursing homes, but we never want to be a financial burden on our children. That’s why Medicaid Asset Trusts are important; they allow you to plan and prepare for the day when you must leave your house and move into assisted living.
You have worked hard all your life for your home and assets, but long-term medical care can quickly deplete it all. Fortunately, there are actions you can take now to ensure you will qualify for Medicaid while still protecting your property.
Medicaid is a state and federally-funded program that pays for medical assistance for certain individuals. There is a financial and asset limit that you must not exceed to receive Medicaid.
Below are some common questions:
1. What are Medicaid Asset Trusts?
This type of trust allows you to be eligible for Medicaid by reassigning all your assets out of your name. Now, your property and assets belong to the trust. Your finances will show you are then eligible to receive Medicaid.
2. How Does a Trust Work?
A trust is established when you transfer your property’s ownership into the trust’s name instead of being in your name. It allows you to still live in your house but names your beneficiary after you pass away. You are the grantor, and you must assign someone to be the trustee.
3. Can Any Trust be Used?
No, a revocable trust will not make you eligible for Medicaid. With revocable trusts, it is considered that you can take your assets back at any time. Therefore, you still own them.
4. Can I Wait and Establish an Irrevocable Trust Right Before I Go Into a Nursing Home?
No, many times, Medicaid will look at the last five years of your assets. Therefore, you want to establish a Medicaid Asset Trust as soon as possible to allow you to be eligible.
We know you may have many more questions. Working with an attorney specializing in estate planning and elder law can help you answer all your questions and establish a Medicaid Asset Trust that works for you.
We can help your parents plan for and protect your future but establishing a Medicaid Asset Trust now. Preparing now will help eliminate the emotional and financial stress on your and your loved ones when planning for your long-term care. Contact us today at 630-864-5835.
AREAS WE SERVE: Cook, DuPage, Kane, Lake and Will counties