Medicaid Trusts, also referred to as Irrevocable “Income Only” Trusts, are a special type of trust used to protect personal assets and allow seniors to qualify for long-term care via Medicaid. These trusts cannot be set up quickly, so careful planning and consideration is needed. For example, if you need home care Medicaid, your Medicaid Trust must be set up 2.5 years ahead of the time when your care begins, and five years before any assisted living care is needed. We recommend consulting with an experienced estate planning attorney if you’re interested in setting up a Medicaid Trust.
What is a Medicaid Trust?
If you have significant assets and don’t want them to impact your Medicaid eligibility, you can set up a Medicaid Trust. Any of your assets placed in this trust are considered completed gifts to the beneficiaries you choose, and the trust can only be revoked under certain circumstances. Each state has its own regulations around revoking a Medicaid Trust, so speak with an estate planning attorney in your state to get the details.
Older adults commonly use Medicaid Trusts for assets like property, cars, stock portfolios, jewelry, and other high-value assets so that these assets don’t impact their ability to qualify for home care or assisted living care via Medicaid. Most people name their child or children as beneficiaries and leave the assets sitting in the trust untouched for many years.
How can they benefit you, and how can you get one?
Home health care, assisted living facilities, and other types of care that people commonly need as they grow old can be very expensive. And even if you’re financially comfortable, there’s no way to predict what your healthcare expenses will be as you age. If you get diagnosed with an illness or have an accident, the costs of treatment, hospitalization, and rehabilitation can easily skyrocket into the tens of thousands. Setting up a Medicaid Trust is one way to help cover future healthcare-related expenses, and an experienced estate planning attorney can discuss your eligibility and options with you.
For more information about Medicaid Trusts, or if you have any questions about how they can benefit you and your family, please contact our team at SCC Legal today to learn more. We look forward to hearing from you.