Elder Law Medicaid Asset Protection Plan

Being a leading practice for elder law in Grand Rapids MI, we are approached by many clients seeking to financially secure their lives when old age inevitably comes knocking at their door. Most of these clients are interested in protecting their assets from costs associated with long-term care. While many seek help from our elder law attorney in Grand Rapids MI to serve a multitude of other objectives, this seems to be their primary cause of concern.

So we thought now would be a good time to give you a brief but comprehensive course on the fundamental concept of Medicaid asset protection plan. In this article, we will walk you through what it actually is, how it works, when to use it, and what its benefits are.

So without much further ado, let’s get started.

What is Medicaid Asset Protection Plan?

Elder law Medicaid asset protection planning involves a trust that is set up to protect your assets from being considered eligible for Medicaid. This Medicaid Asset Protection Trust makes a person eligible to enjoy long-term benefits coming from Medicaid. With a solid MAPT in place, you don’t have to worry about your assets being used when long-term care is needed.

Medicaid requires individuals to maintain a certain level of assets to qualify for these benefits. These rules are very strict with a five-year look-back period also involved determining whether a person qualifies. The process is extremely complicated and it is highly recommended that you seek the help of the very best Medicaid trust attorney you can find.

Why is it Needed?

We live in a less-than-ideal world where healthcare can be a costly affair. Most youngsters don’t bother to purchase long-term care policies when they are capable of doing so. The elderly don’t have enough money to pay for the high costs associated with long-term care. As such, many people rely on Medicaid benefits to cover their nursing bills, which usually come at the cost of the assets and resources they own.

It doesn’t have to be this way, however, and a good Medicaid asset protection plan under the guidance of a reliable Medicaid trust attorney usually does the trick.

How Elder Law Medicaid Asset Protection Planning Works?

As we mentioned before, a Medicaid Asset Protection Trust helps families and individuals effectively reap Medicaid benefits for the future while also making sure their assets aren’t depleted. In fact, MAPTs are integral tools for estate planning and our elder law attorney in Grand Rapids MI couldn’t agree more.

These trusts essentially allow Medicaid applicants to transfer their ownership over countable assets to the name of the trust, where they become exempt assets. Moreover, these trusts have to be irrevocable. This basically means that the grantor cannot change or terminate the trust if they wish.

The Grantor here would be the one who creates the Medicaid asset protection trust. The grantor or their spouse may not be named as trustees. However, they are allowed to name their adult children or other family members as such. The trustee here would be the one tasked with managing and controlling the assets placed in the trust. There are strict rules associated with the created trust that the trustee cannot violate.

As we mentioned before, these trusts are subject to the five-year look-back rule of Medicaid. As such, the grantors must create a Medicaid asset protection trust long before applying for Medicaid benefits.

What are the Benefits of Medicaid Asset Protection Planning?

As our expert attorney of elder law at Grand Rapids MI would tell you, there are many tempting benefits to creating a Medicaid asset protection plan. The most prominent of which is the fact that you qualify for Medicaid benefits when you need them. With this trust in place, you don’t have to rely on your assets to pay for your long-term care in old age.

These trusts are also known to protect the applicant’s assets from Medicaid estate recovery, which occurs when the Medicaid beneficiary dies and is spearheaded by the state to recover costs it paid for the Medicaid applicant’s long-term care.

The Bottom Line

Simply put, strong Medicaid asset protection planning is necessary to protect your resources and assets while ensuring you’re covered for expenses pertaining to long-term care. That is the assistance our elder law attorney in Grand Rapids MI specializes in. The Law Offices of Sean Patrick Cox has substantial experience dealing with elders’ assets and Medicaid planning.

You can count on our attorney to help you develop an appropriate plan that best serves your interests. We are considered to be the best law firm for elder law in Grand Rapids MI, especially when it comes to asset protection and trust planning.

We suggest you reach out to us for elder law assistance you can trust.