Navigating the world of Medicaid can be daunting, especially when balancing your health needs with protecting your hard-earned assets. Medicaid is a valuable resource for those with limited incomes, providing coverage for nursing home care. However, to qualify for this assistance, you might need to spend down most of your countable assets, risking the loss of your financial legacy. Fortunately, you can protect your savings and preserve your legacy with the right trust protection strategies. Here are five different trust protection options to consider.
Apply for Long-Term Care Insurance
One effective trust protection strategy is securing long-term care insurance. This insurance helps cover nursing home expenses, reducing the strain on your assets. While you’ll pay monthly premiums, the insurance can provide a significant cushion against high care costs, allowing you to preserve your savings for future needs or to leave for your loved ones. This being a good option it can be very costly.
Transform Your Assets into Income with a Medicaid-Compliant Annuity
A wise way to protect your assets from nursing home costs is to convert them into income with a Medicaid-compliant annuity. Doing so can lower your asset value to meet Medicaid requirements without losing your funds. Investing a lump sum in a qualifying annuity returns regular payments to you. This reduces your asset value, helping you qualify for Medicaid while receiving income from your investment. This approach helps protect your savings from being depleted by nursing home costs.
Transfer Assets to an Irrevocable Trust
Consider setting up an irrevocable trust to protect your assets from nursing home costs. This transfers ownership of your assets to the trust, managed by a trustee, effectively removing them from your estate. Placing assets in an irrevocable trust reduces your estate’s value, potentially making you eligible for Medicaid while preserving your assets. Since Medicaid reviews financial transactions from the past five years, it’s crucial to act early to protect your assets in time.
Contact the Estate Planning Attorneys at Deliberato Law Center
If you have questions about protecting your assets from Medicaid, our team at the Deliberato Law Center is here to assist you. With years of experience in protecting our clients’ valuable assets, we can help you navigate your options. Call us today at 216-341-3413 or complete the form below to get started.
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