Crowdfunding is a useful tool provided by platforms like Go Fund Me and Kickstarter to help raise money across the country and worldwide for various needs, including funding charitable causes and small businesses, as well as the creation and development of new products. Some people also use these platforms for personal interests, like funding their tuition, travel or personal healthcare costs, making it a very popular tool. However, crowdfunding campaigns need to be carefully considered, as they may affect your eligibility for Medicaid.
Understanding Medicaid eligibility
As a state and federally funded program, there are certain restrictions in place that limit who can make use of the medical assistance that they provide, and one of these limitations is on your income and assets. Essentially, you have to fall below the value threshold for your income and assets in order to qualify and receive assistance.
Does a crowdfunding campaign count as income?
This depends on who sets up the campaign and has access to the funds and resources it provides. Medicaid will consider this as part of your income if this is you, but it is more of a grey area if the fund is set up by someone else and you do not have direct access to the income it provides.
What’s the best way to retain Medicaid eligibility?
This doesn’t mean that you should refrain from using crowdfunding platforms to raise money for your benefit, but it needs to be done in a way that will not count towards your income and prevent you from receiving assistance from Medicaid. The best way to do this is through a Supplemental Needs Trust, as the assets of the trust (that is, the income from your crowdfunding campaign) will be not by you, but by the beneficiary of the trust (a trusted individual named by you).
Get compassionate legal advice from a trusted NJ elder law attorney in New Jersey
If you would like assistance in setting up a trust to manage additional income and assets, or other Medicaid assistance, speak to Frank R. Campisano today. Experienced in elder law, compassionate and committed to his clients, you’ll receive the highest quality legal expertise and guidance that will help you secure better care. In addition, you can also prepare additional estate planning documents, such as your Last Will and Testament, Power of Attorney documents and trusts. For more compassionate legal guidance, Medicaid planning information and a free consultation, please contact us or visit our website at http://www.scclegal.com/ today.