Medicaid planning is a potentially useful tool for many people who are normally too wealthy to qualify for Medicaid benefits, but not wealthy enough to afford expensive insurance to cover their healthcare needs. However, not everyone who might benefit from this type of planning makes proper use of it, subjecting them to the risk of major healthcare costs over time. So what exactly is Medicaid planning, and how can it help protect you?
What is Medicaid Planning?
In simple terms, Medicaid planning is the process of reorganizing your personal assets to be able to qualify for Medicaid benefits, particularly long-term care and community-based care benefits. Under normal circumstances, people cannot qualify for Medicaid unless they fall below a certain threshold in terms of their annual income and the amount of assets they have. Medicaid planning helps get around this restriction so you can access those benefits anyway.
How Does Medicaid Planning Work?
The key part of Medicaid planning involves the use of something known as a Medicaid Asset Protection Trust, also known simply as a Medicaid trust or MAP trust. When you place your assets in the trust, those assets are no longer considered to be yours for the purposes of qualifying for Medicaid. This can allow you to qualify for Medicaid benefits without needing to sell off or give away your personal assets.
How Does it Protect You?
The most basic way Medicaid planning protects you is it can allow you to obtain healthcare benefits through Medicaid, meaning you do not need to shoulder the costs entirely by yourself. In addition, assets placed in a Medicaid trust are protected against creditors and preserve tax benefits to a certain extent. And finally, you can ensure your assets are protected for you and your loved ones, rather than needing to sell them off to pay for your care.
What Should You Do?
Ultimately, Medicaid planning is not for everyone, and how much you can benefit from it will depend on your personal situation. That is why you should speak to a lawyer with experience handling estate planning and elder law issues. They can assess your case, and determine what may work best for you.
If you are looking to plan your estate, or have any other needs related to probate, estate administration, or elder law, you should contact Leventhal Elias Law, PLLC. She can assist you with every aspect of New York estate and elder law, allowing you to focus on what really matters. For a consultation, contact her at her Staten Island office at 718-448-6655, or email her at EliasEsq@outlook.com.
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