The best general method of protecting assets when someone may need placement in a skilled nursing facility is putting a specific amount of personal assets in irrevocable medical protection trusts. There are some restrictions on qualifying for Medicaid associated with the funds transfer, but it can still be very effective in protecting assets while the asset holder is in a skilled facility. This is common in the state of California when one family member needs medical attention that their spouse or parent does not.
Medical asset protection trusts are usually a central component of a comprehensive estate plan that not only allows the individual to qualify for Medicaid under the asset rules but also transfers ownership of the assets while still allowing the individual to receive income generated by the holdings as investments. It is never a good decision to attempt handling this legal transfer personally because of certain legal applications. It is always the best step to retain an estate planning attorney like the professionals at Beyer Pongratz & Rosen Law Firm in Sacramento, California.
Qualifying for Medicaid
Medicaid is a form of medical funding that differs from Medicare in several respects, with one of those being the means test used for qualification. The establishment of an irrevocable medical protection trust is purposed to exclude most personal assets from consideration as an asset, which is exactly what happens after the creation of medical asset protection trusts. The fund in the trust can still be used for income purposes as long as the income does not total over a specific amount.
What an Elder Law Professional Provides
Having an elder law legal professional is important because they can ensure that all components of Medicaid funding qualification are met while as many assets as possible are excluded from consideration and protected from creditors and government taxing agencies. This often includes protection from probate attachment as well in the event of death because of transferred ownership of the irrevocable trust funds. Medical asset protection trusts actually make the funds the property of the beneficiaries, even though the funds are not transferred until all primary trust makers die.
Anyone in the Sacramento, California area who is considering establishing a medical asset protection trust should contact Beyer Pongratz & Rosen Law Firm for a full evaluation of how it can protect family assets.