As people are living longer with chronic health conditions, they may require care in an assisted living facility or in a skilled nursing facility. Long-term care is expensive, and Medicare will pay for skilled care for rehabilitation on a limited basis. Families are looking for options to plan and pay for long term care in a facility, while preserving assets for a community spouse, disabled child or to leave an inheritance to their children.
For this reason, an increasing number of people are considering an asset protection trust.
Establishing a Medicaid Asset Protection trust
A Medicaid trust can be an invaluable tool in the world of estate planning and long term care planning. When you place your assets in a trust, you are giving up ownership of your asset and can name another person as the beneficiary. Since you no longer own the assets, the assets cannot be considered as your asset when you apply for Medicaid.
This is a very specialized area and requires expertise and extensive planning. Missouri has a 5 year look back period where the assets an applicant transfers for less than fair market value can be considered.
Fernandez Elder Law can help you with your estate planning and will work with you to determine if asset protection planning is needed.