A specific type of legal arrangement designed to protect assets while facilitating eligibility for long-term care benefits, particularly Medicaid, is based on a particular estate planning tool. This arrangement typically involves transferring assets into a trust that cannot be easily altered or revoked. The aim is to shield these assets from being counted towards an individual’s resources when determining Medicaid eligibility for covering the expenses associated with residing in a skilled care facility. An example is placing a home and savings into such a trust more than five years before needing skilled care; the trust then owns those assets, potentially excluding them from Medicaid’s asset calculations.
The significance of these arrangements lies in their potential to preserve a family’s wealth while ensuring access to necessary care in later life. Historically, the rising costs of long-term care have prompted individuals and families to seek legal and financial strategies to mitigate the financial impact. Properly structured, such a trust can offer peace of mind, knowing that assets are protected for future generations or other beneficiaries, all while the individual needing care can still qualify for assistance with substantial healthcare costs. The complex legal and financial considerations necessitate careful planning with qualified professionals.
