Medicaid planning is, for many people, an effective means of preparing for the potential medical costs that come with needing long term care. Medicaid planning can be immensely beneficial, and protect you from needing to pay for your long term care out of pocket. But how exactly does Medicaid planning work, and how might it potentially benefit you?
What is Medicaid Planning?
Medicaid planning refers to a type of planning meant to help people access Medicaid benefits when they might not otherwise be eligible to receive Medicaid. Ordinarily, people cannot obtain Medicaid benefits if they have too much income, or if they have too much in personal assets. However, with this type of planning, you can get around the asset and income limitations, allowing you to qualify for Medicaid if needed.
How Does Medicaid Planning Work?
There are several Medicaid planning tools. One method could involve placing your personal assets in something known as a Medicaid Asset Protect Trust (MAPT), or just a Medicaid trust for short. Once assets are transferred into the trust, the assets are controlled and managed by a trustee you appoint who is in charge of the trust. So long as your assets remain in the Medicaid trust and managed properly, the assets may not count toward the Medicaid asset maximum for home care and will not count for nursing home care after the assets are in the trust for 5 years, allowing you to potentially qualify for Medicaid benefits.
How Can Medicaid Planning Benefit You?
The most essential benefit to Medicaid planning is that it can help you cover the costs of your long-term care which can be home care or nursing home care and this will ensure that you won’t have to pay for your long-term care expenses if done properly. This is especially important if you suffer from chronic medical problems, which may require long-term care. In addition, the assets that are held in the trust are considered non-probate, allowing you to avoid many of the legal hurdles involved with probating a Will after you pass away.
What Should You Do?
Ultimately, the question of whether Medicaid planning might be beneficial to you will depend on your personal circumstances. That is why you should speak with a lawyer with experience handling Medicaid. They can help you review your personal circumstances, and help you come up with a Medicaid plan that best suits your needs.
If you or a loved one are dealing with legal issues related to estate planning, or you are dealing with any other issue related to elder law, you will need specialized legal advice. The attorneys at Hobson-Williams, P.C. are skilled in all aspects of elder law, and are dedicated to representing clients with diligence and compassion. To speak to an attorney or to schedule a consultation, call 866-825-1LAW.
