Medicaid & Nursing Home Trusts
Meeting the costs of nursing care is a challenge for any family. What can be harder is knowing what programs are available to help with the cost and what the requirements are to take advantage of them. At Morgan Law we help our clients plan for nursing care.
Most of our clients are concerned about losing their home to the State. There are some really pervasive myths both about what the state will do if you need nursing care, and myths about what you can do to stop the state from taking your home.
Understanding The Risk To Your Assets
In general, the State of Utah will only pay for nursing care if a person is medically needy to the point that they are unable to perform some essential tasks of daily living, tasks like feeding themselves, toileting themselves, clothing themselves, bathing themselves and moving around freely.
The State pays for nursing care through its Medicaid program. This is essentially state funded medical insurance for those without resources. This is different from Medicare, which a Federal Government insurance program for those over the age of 65. Medicaid will pay for nursing care, Medicare does not generally pay for long-term care.
So if you want the state to pay for Nursing Care you have to be on Medicaid which means that you have few if any assets. Generally, Medicaid requires that a person have less than $2,000 before they can be accepted onto Medicaid for nursing care. An exception to this rule is a home, household furnishings, some personal belongings and a vehicle. However, when a Medicaid recipient dies the State is authorized to put a lien on the remaining assets to pay back the costs the state spent on nursing care.
Medicaid Coverage Myth
One major myth says if you just give away all of your assets, the state has to cover you. I could share some real horror stories where parents tried to just give their home to their children in order to keep the state from taking it only to be denied Medicaid coverage. The law gives the state a five year look back period, meaning that the state will require a five year financial history from whoever is seeking state assistance with nursing care. If the State finds an instance within the past five years where the applicant gave away a valuable asset, the state will impose a penalty period during which the applicant will not be able to qualify for Medicaid.
Key Benefits of A Utah Medicaid Asset Protection Trust
Here is where a trust can be helpful in some cases. A Utah Medicaid Asset Protection Trust is a powerful estate planning tool designed to protect your assets while ensuring you qualify for Medicaid benefits. Here are some key benefits of a Utah MEDICAID ASSET PROTECTION TRUST:
Asset
Protection
One of the primary benefits of a Medicaid Asset Protection Trust is that it protects your assets from being counted towards Medicaid’s asset limit. This means that even if you have significant assets, you can still qualify for Medicaid benefits.
Estate Recovery Protection
Assets held in a Medicaid Asset Protection Trust are protected from Medicaid’s estate recovery program. This means that after your death, Medicaid cannot seize assets held in the trust to repay the cost of your care.
Preserving Inheritance
A Medicaid Asset Protection Trust allows you to preserve assets for your heirs. Because the assets in the trust are not counted towards Medicaid’s asset limit, they can be preserved for your beneficiaries.
Flexibility
While a Medicaid Asset Protection Trust is irrevocable, meaning it cannot be changed once it is set up, it does offer some flexibility. For example, you can choose who will serve as trustee, and you can specify how the trust’s assets should be distributed after your death.
Continued Benefit From Assets
Even though you transfer your assets into a Medicaid Asset Protection Trust, you can still receive the income generated from these assets. For example, if you transfer your home into the trust, you can continue to live there.
Avoidance Of Probate
Assets held in a Medicaid Asset Protection Trust do not have to go through probate after your death. This can save time and money, and it can also provide privacy, as probate is a public process1.
Creditor Protection
In addition to protecting your assets from Medicaid’s estate recovery program, a Medicaid Asset Protection Trust can also protect your assets from other creditors. This can be particularly beneficial if you have concerns about potential future creditors.
Why Choose Us
Setting up a Medicaid Asset Protection Trust can be a complex process, and it’s important to work with an experienced attorney who understands the intricacies of Medicaid law and estate planning. This is where Morgan Law comes in:
Expertise
Morgan Law has extensive experience in setting up Medicaid Asset Protection Trusts. They understand the complexities of Medicaid law and can ensure that your trust is set up correctly.
Ongoing Support
After your trust is set up, Morgan Law continues to provide support. They can help you understand how to manage your trust and can provide advice on any issues that may arise.
Ongoing Guidance
Our commitment extends beyond the setup, providing ongoing guidance for trust administration to ensure continued alignment with the evolving needs of the individual. We offer no-cost document reviews, encouraging regular check-ins to ensure the Utah Special Needs Trust remains tailored to our clients’ needs.
Personalized Service
Morgan Law provides personalized service, taking the time to understand your specific needs and goals, and tailoring the trust accordingly.
Peace Of Mind
Perhaps the most important reason to choose Morgan Law is the peace of mind that comes from knowing your Utah Medicaid Asset Protection Trust has been set up correctly, in accordance with all relevant laws and regulations.
Convenience
At Morgan Law, we never charge to chat. We offer in home or office visits. Our goal is always to empower our clients, not to pitch them things they don’t need. Please feel free to reach out, we are here to help.
In Conclusion
Utah Medicaid Asset Protection Trust can provide significant benefits, including asset protection, estate recovery protection, and the preservation of assets for your heirs. However, setting up a Medicaid Asset Protection Trust is a complex process that requires specialized knowledge and experience. Morgan Law has both, making us an excellent choice for anyone considering setting up a Medicaid Asset Protection Trust.
