Imagine you have spent your entire life working hard to save and earn your money. Nevertheless, you are now too old and infirm to care for yourself and you need to move into a long-term care facility to benefit from round-the-clock medical care. Unfortunately, if you have considerable assets at your disposal, you will need to spend these assets on your long-term care costs, which could exhaust the legacy you hope to leave for your children. That is, as long as you still continue to own the assets in your name.
If your savings no longer belong to you, a small net worth will allow you to receive government-sponsored Medicaid benefits to pay for your long-term care. Normally, individuals can only qualify for these benefits after they have exhausted their savings, but if they complete a Medicaid trust plan ahead of time, they might be able to sign over the lion's share of their finances to the ownership of the Medicaid trust for the benefit of their heirs. This is a lawful way to preserve one's hard-earned assets by planning ahead for the day that long-term care might be required.
Medicaid trusts require careful planning in order for them to be successful. In fact, if you exceed the asset limitations by just 50 cents, it could serve to disqualify you from receiving the government benefits you're trying to receive – and result in the exhaustion of your finances.
If you're already in your 60's it's important to consider this preparation now. If you'd like to know more about Medicaid trust and other types of trust planning, our law office available to discuss your situation in a free, no-obligation, first-time consultation.