In order to be approved for Medicaid, there are certain asset and income limitations. But it is possible with proper planning to remove assets from under your name if it is done long enough before receiving the benefits.
When planning for your future needs, one of the most effective ways to remove assets from your name is to establish a Medicaid Asset Protection Trust. The Medicaid Asset Protection Trust (MAPT) is used by NY estate planning lawyers to help their clients to qualify for Medicaid without giving up all of their assets. Assets moved into the trust are no longer viewed as assets disqualifying you or putting you over the income cap. This is preferred to a direct transfer to a family member which can cause issues in the finances of the family member (children usually) or remove any tax exemptions you were previously getting. Which can costs thousands or tens of thousands
When it comes to protecting family homes, MAPT is the first choice of many lawyers. A new deed is signed to transfer your home or other property into the MAPT without losing the value of the home. Additionally, when a home is owned by the trust you can continue to live in and keep tax exemptions or other benefits.
Homes are not the only assets that can be transferred into these kinds of trusts. Investment accounts can also be moved to the MAPT and you can continue to receive investment income, but will no longer have access to the initial principal funds, and because a MAPT must be irrevocable to be effective, it is important to carefully consider the assets and amount you place in it.
There are some assets that are not considered to be assets according to Medicaid, like a 407K or IRA so these types of accounts do not need to be moved in the MAPT. But proper planning should also be done first to consider which assets should be transferred to the Medicaid Asset Protection Trust
To learn more and to start planning now contact a local Medicaid attorney today
Roman Aminov Esq. Estate, Probate & Elder Law of Queens 147-17 Union Tpke, Queens, NY 11367 (347) 766-2685 https://www.aminovlaw.com/