Medicaid Asset Protection Trust

If You Want to Protect Your Assets While Also Being Eligible for Medicaid, then a Medicaid Asset Protection Trust in New York May Be Something You Want

As you get older, the possibility of needing Medicaid rises. You have saved a lot during your lifetime, and you do not want those savings to be diminished for long-term care. Medicaid is necessary for many people. However, a lot of people may have too many assets that would possibly make them ineligible for Medicaid. A Medicaid asset protection trust in New York is a way to plan for this. The Medicaid asset protection trust in New York will protect your assets and shield them from Medicaid so that you remain eligible. Speaking with an experienced attorney, you can make the right choice for yourself.

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important things you should know

Questions And Answers

A Medicaid asset protection trust in New York is a trust whereby the income and/or assets of an individual are placed to protect it from Medicaid. This ensures that the individual remains eligible for Medicaid when they need it.

If you have too many assets, Medicaid can penalize you for it. You may not be able to get Medicaid at all. Medicaid has a predetermined limit as to the amount of income and assets you can have to be eligible for their program. By using a Medicaid asset protection trust in New York, you remove the surplus income and assets thereby coming under the limit.

The grantor in a Medicaid asset protection trust in New York is the person who is providing the property for the trust.

The trustee in a Medicaid asset protection trust is the person who will manage the trust.

A beneficiary, or beneficiaries, is the person or persons who will get the property in accordance with the wishes of the individual who the trust is for.

A Medicaid asset protection trust is important because it protects the assets of an individual who need Medicaid but has surplus income or assets that would otherwise make them ineligible for such a program.

Medicaid has a “look-back” period in which, upon applying for Medicaid, they will “look back” over the previous five years to see if any assets or income were transferred away from the estate. If they declare that this has happened, then the person would be ineligible for Medicaid.

The look-back period affects Medicaid asset protection trusts because when a transfer of property or income into the trust would directly violate the look-back period. Therefore, it is important to establish a Medicaid asset protection trust in New York as soon as you can.

It is important to plan for a Medicaid asset protection trust in New York. If you think you will need Medicaid in under five years, it may be best to avoid this type of trust. However, if your plans can sustain the waiting period, then establish the trust. It is best to establish the trust when you are still healthy, and the waiting period does not affect you directly.

Medicaid does not consider the assets contained in the trust to be your property and therefore does not count them against you. Consequently, the income and assets located within the trust are no longer your property, either.

If you do not use a Medicaid asset protection trust, but need Medicaid, you must make sure you are eligible. If you are not, Medicaid may penalize you. They can deny you Medicaid, come after your assets, or even make claims on your house and estate that would require family members to pay off after your death.

A Medicaid asset protection trust in New York is a tool used in estate planning, and, because of this, it is important to discuss your options with an estate planning (or elder law) attorney. An attorney can look at your assets and income and advise you on the best decisions you should make. Moreover, they will provide ample information regarding your circumstances so that you know exactly what you are doing.

If you transfer your property directly without the aid of the trust you risk losing your Medicaid eligibility as this is in direct violation of the trust and of Medicaid.

Yes, when your home is placed within a Medicaid asset protection trust in New York, you can continue to live in your home. One of the main reasons you may use the Medicaid asset protection is to stay in your home if you can without the need for a nursing home.

No, a Medicaid asset protection trust in New York will not affect your Social Security benefits.

No, a Medicaid asset protection trust in New York will not affect your SSI eligibility.

Yes, beneficiaries may access the principal of the Medicaid asset protection trust. It is important to note that you may not access your own principle placed in the trust.

Yes, gifts to the trust violate the look-back period of Medicaid. If a gift is made during the look-back period, Medicaid will view it as a transfer of assets and could deny your application for Medicaid. It is best to make any gift transfers before you establish the trust to avoid conflicting with the look-back period.

You should not use the Medicaid asset protection trust in New York for personal expenses, such as utility bills.