Commonwealth.com’s article, linked below and entitled “Benefit or Backfire: Navigating the Irrevocable Medicaid Trust,” explains the basis and caveats behind creating such a trust to ensure Medicaid eligibility. As Commonwealth.com puts it:
“The idea behind an irrevocable Medicaid trust is to simulate a gift through the use of a trust. When establishing such a trust, the donor typically names his or her children as trustees and beneficiaries and then funds the trust with certain assets (e.g., his or her residence and investments). As long as contributions are made to the trust more than five years before the donor applies for Medicaid long-term care benefits, the state Medicaid office will not penalize the donor for transferring assets to the trust, and the assets’ existence will not affect Medicaid eligibility.”
This means that, although the maximum assets you can have in the State of New York is $15,450, owning a car or a home won’t immediately disqualify you. An Irrevocable Trust can act as a legal workaround that allows you to hold onto your assets and qualify for Medicaid at the same time.
Danna & Associates, PC is an Estate Planning & Elder Law firm that was founded in 1994. With over 25 years of experience, we are able to provide ample advice and help you become eligible for Medicaid, no matter what your situation may be.
Call 718.273.0300 for your free consultation today!
Click here for the article!