Boca Raton Medicaid Asset Protection Trusts Lawyer
A Medicaid Asset Protection Trust is an important estate planning tool that can protect your assets.—- However, like most legal matters, these Trusts may have the potential to become complex. If they are not drafted properly, your family might not be able to benefit from the protection you thought you had provided. Below, our Boca Raton Medicaid asset protection trusts lawyer explains when you might consider this type of Trust, and how they work.
What Are Medicaid Asset Protection Trusts?
Medicaid Asset Protection Trusts are irrevocable Trusts that can serve as a highly effective way to preserve your assets. With a Medicaid asset protection trust, you can transfer assets into the trust and they are then not counted toward your eligibility for Medicaid.
As the Trustor, when you create a Medicaid asset protection trust, you can name one or more people to manage the Trust. You cannot name yourself or your spouse as the manager of the trust. However, you are still entitled to all of the income from the Trust during your lifetime. Your spouse could also have the right to this income if you include that provision within the Trust. While neither you nor your spouse can withdraw from the principal, you can distribute it to others who can then use it to provide for your needs.
You can provide very specific instructions regarding how the assets within the trust are managed. You also have the right to change trustees at any time, if the current trustee is not satisfactorily managing the trust. If you place real estate within the trust, such as your home, you continue to have the full right to use it. The principal will remain in the trust until you pass away, at which time the assets within it will pass directly to your beneficiaries, without the need for probate.
When Do You Need a Medicaid Asset Protection Trust?
Medicaid asset protection trusts are not for everyone, but there are times when they are particularly beneficial. These include when:
- You are concerned about preserving funds and assets for your spouse or other loved ones,
- You may need Medicaid benefits for long-term care in the future, even if you are currently healthy,
- You have not purchased long-term care insurance, or you have not taken any other action that will help you cover the cost of long-term care, and
- You have loved ones you can trust, such as adult children, whom you can name as the trustee.
Our Medicaid Asset Protection Trusts Lawyers in Boca Raton Can Help With Your Estate Plan
If you believe you may need Medicaid one day, you need to protect your assets as well as your eligibility. At SAMUELS WOOD PLLC, our Boca Raton Medicaid asset protection trusts lawyer can provide the sound legal advice you need to protect yourself now and in the future. Call us today at 561-864-3371 or connect with us online to schedule a consultation and learn more about your legal options.