Blog









 

Missouri Estate Planning Attorney, Hannibal, MO Estate Planning Attorney, Chesterfield, MO Estate Planning Attorney, Columbia, MO Estate Planning Attorney

Missouri Elder Law Attorney, Hannibal, MO Elder Law Attorney, Chesterfield, MO Elder Law Attorney, Columbia, MO Elder Law Attorney

Missouri Medicaid Attorney, Hannibal, MO Medicaid Attorney, Chesterfield, MO Medicaid Attorney, Columbia, MO Medicaid Attorney

Missouri Farm Planning Attorney, Hannibal, MO Farm Planning Attorney, Chesterfield, MO Farm Planning Attorney, Columbia, MO Farm Planning Attorney

Missouri Attorney, Hannibal Missouri Attorney, Chesterfield Missouri Attorney, Columbia Missouri Attorney


Medicaid Planning

Posted on: May 5th, 2014
The Medicaid Trust
 
One currently-effective planning technique is to transfer assets into a Medicaid trust. In a Medicaid trust, the trust maker retains the right to all of the trust income for life while irrevocably giving up the right to receive or benefit from any of the trust principal. The assets in the trust are not available to pay for the cost of the Trustmaker’s LTC.

By using a Medicaid trust, a senior can preserve capital and still qualify for Medicaid, but only after expiration of the look-back period for the transfer to the trust (which is 60 months (5 years).

The “penalty period” starts from the date the applicant applies for Medicaid and would be eligible but for the disqualifying transfer. Its length is determined by dividing the state’s average daily private pay nursing home cost into the total of the transfers made during the look-back period.

For the Medicaid trust strategy to work, insurance, an income stream, or other assets must be sufficient to pay for LTC if needed during the waiting period before applying for Medicaid.

A Medicaid trust can allow the Trustee to distribute principal during the Trustmaker’s lifetime for the benefit of the Trustmaker’s spouse, children, or other designated beneficiaries, just not to or for the benefit of the trust maker. Many trustmakers choose to maintain the right (called a Special Power of Appointment) to change the current or ultimate beneficiaries of the Medicaid trust by reappointing the assets to different family members at a later date.

Even if the need for LTC is imminent or immediate, sophisticated Medicaid planning opportunities can be employed to protect a substantial portion of your assets. Carefully working within the Medicaid transfer rules can allow individuals to provide security for themselves and a legacy to their families, while ensuring that they will remain eligible to receive LTC under Medicaid when necessary.



 
Share |

Comments (0)



Post a comment
You have to login or register in order to post comments
Forgot Password? Enter Login Email


Login

Your Email:
Password:
Remember me

Contact Us

To Schedule an Appointment


  1. Please enter the security code below:
Facebook Twitter LinkedIn YouTube
WealthCounsel

AdvisorsForum