Whether or not an elderly person receives benefits under Medicaid can have a significant impact on their finances and those of their family. Medicaid can provide significant financing when an individual requires in-home nursing care or needs to move into a long-term care facility. Unfortunately, these benefits are only available to people who do not violate the state’s maximum income and asset levels.
One way to ensure that an individual qualifies for benefits is to place property, cash, and other assets into a trust. These trusts can take control of a family home, vehicles, and business interests to keep them intact for eventual inheritance. Even so, there are strict rules that control when these trusts can take control over property in a way that leaves it invisible to evaluation during the Medicaid process.
A Manalapan Township Medicaid planning lawyer could help an individual set up a trust that leaves them eligible for these benefits by identifying vulnerable property, explaining the trust process, and drafting documents that satisfy all legal requirements.
Eligibility for Medicaid Benefits
Medicaid is a state and federally funded health care program that provides a variety of benefits to people of all ages. One major portion of this program provides payments to long-term health care and nursing facilities when an individual is unable to afford these services. Other potential benefits include in-home nursing services benefits for people who are blind or otherwise disabled.
To qualify for this program, a person must meet the economic eligibility requirements, as Medicaid is only available to people who could not afford these services otherwise. However, many elderly people may run into a situation when paying for nursing home care on their own would result in the loss of their assets and destroy their heirs’ inheritance. As a result, effective Medicaid planning with the help of a Manalapan Township attorney is essential.
Placing Property into a Trust to Protect Assets
Medicaid comes with strict economic requirements. However, it is possible to transfer property and assets out of one’s control for the purpose of satisfying these requirements. The most common way to achieve this is to place property into a trust.
A trust functions by appointing a trustee to take control over property. At an assigned time, that trustee will transfer the assets to the designated beneficiary. As applied to Medicaid planning, these assets usually include a family home.
However, it is important to understand how the law views these transactions as applied to Medicaid. While these transfers are legal, the law does place a minimum time limit between the creation of a trust and an application for Medicaid. According to the Social Security Act, Medicaid can now examine a person’s finances for the previous five years when determining eligibility, which means that the creation of a trust must precede an application for Medicaid by at least five years. This means taking steps towards planning for Medicaid in Manalapan Township early on is of the utmost importance.
Reach Out to a Manalapan Township Attorney Right Away to Start Planning for Medicaid
Many expenses that arise during a person’s senior years can place a great strain on their current finances and their estates, and lacking a proper Medicaid plan could see the sale of their assets to pay for this necessary care.
However, a comprehensive and anticipatory Medicaid plan could help to preserve these assets. A Medicaid planning lawyer in Manalapan Township is prepared to discuss your options and could help you qualify for these benefits. Call today to set up a consultation and learn more.