Medicaid asset protection trusts are a way to shelter assets and not have them impact eligibility for Medicaid nursing home benefits. Many seniors forego purchasing long-term care insurance due to the cost. An alternative approach is to place assets not needed for everyday living that you want to leave to your children into an irrevocable Medicaid asset protection trust. These trusts are funded with money you will not need to live on. Once placed in the trust, they will not be accessible to your creditors. So you have creditor protection as well. After 5 years, you can apply for Medicaid to pay for nursing home costs and those assets are protected from Medicaid. The actual transfer to the trust creates a penalty period in relation to eligibility for Medicaid nursing home benefits. The penalty is 1 month of eligibility for every $9,485.00 placed in the trust. However, this can be addressed should you need eligibility for Medicaid to pay for nursing home care within the 5 year period. An elder law attorney who focusing on Medicaid eligibility should be consulted if you want more information on how the use of an irrevocable Medicaid asset protection trust may make sense for you. Contact our office to sign up to attend an educational symposium on our firm’s Life Care Asst Protection and Planning System.
Asset Protection – Medicaid Pays for Nursing Home Cost
