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3 Importance Of Medicaid Asset Protection Trusts And Planning

Medicare is referred to a federal government program that provides health coverage for elderly citizen usually between the age of 65 or older or has a severe disability issue, no matter their income. Medicaid is also a state and federal health plan that grants health coverage if you have a very low income.

Ideally, most individuals are expected to plan ahead should they require a home care or senior elderly care homes in the future, which boils down to the fact that many of us either have little or no plan for a long-term insurance coverage care, to help us leverage health insurance protection scheme. Only a few people have this thought to save up some funds to carter for a long-term insurance care plan which at some point, their bills for that care is been offered by Medicaid.

Mostly in the united state to qualify for a Medicaid program, your asset should be limited, but not necessarily mean you have to bankrupt your whole family just to qualify for Medicaid. Take not even as Medicaid looks into your assets and recent transfer or acquired assets to quantify if you qualify, it also recognized the fact that some asset is not considered countable for Medicaid purposes.

  1. An Irrevocable Trust Can Help You Protect Assets For Medicaid Purpose.

This is a situation whereby the asset set aside for the Medicaid protection are not available for own use if you are using your assets personally to set up the trust and funding it with your assets.

Nevertheless, when we set up trusts using our assets for Medicaid asset protection trust, our primary purpose is, therefore, to set up the trust so that the asset is not considered to belong to the grantors, which means the people setting up the trusts, are funding it with the assets set aside for Medicaid asset protection trusts.

  1. One Can Decide To Have Access To Income From A Irrevocable Medicaid Trust.

Medicaid asset protection trusts can allow you get income from the asset you had placed as trusts. Hence, the trusts are able to generate and earning some percentage interest per year, then only you can receive the benefits of the earnings per year but still will be unable to get the actual figures placed on the trust. Especially when you set up the trust to generate income, therefore, that income will be regarded as your income when you apply for Medicaid.

Bear in mind this procedure must be set outrightly in other to allow only your income count and not the principal.

  1. You Can Actually Have The Right To Decide Who Gets The Benefits Of The Trust When You No More.

One of the advantages of Medicaid irrevocable assets protection trusts, is that no matter the reasons, you can not get the assets revoked or place to yourself, you only can reserve the right to determine who get the assets when you pass on, and also you can equally change your mind towards it through what is called Reserve Power of Appointment which gives you autonomy to choose who benefits from you Medicaid assets protection trusts.

However, this particular function makes the irrevocable Medicaid asset protection trust more reliable compared to the normal willing of assets to family members as part of Medicaid estate planning strategy.

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