Medicaid Asset Protection Services
As part of our Certified Medicaid Planning services, we offer asset protection services to help preserve your assets and extend the life of your hard-earned savings.
Comprehensive Asset Protection Solutions for Seniors
Medicaid has strict asset eligibility requirements. Generally speaking, the asset limit to qualify for Medicaid is $2,000. Our team recognizes the difficulty seniors face when confronted with the high cost of long-term care and the realization that their assets will deplete quickly if they are required to pay the total cost of care out of pocket. We are specially trained in Medicaid planning and asset protection strategies to help seniors preserve their assets and avoid impoverishment.
Strategies for Protecting Assets from Medicaid
In addition to thoughtfully implementing a spend-down plan, there are additional Medicaid planning strategies that can help protect assets and extend the life of your savings.
Because every state has unique rules and regulations regarding Medicaid asset eligibility, some strategies may not be available in your location.
Medicaid Asset Protection Trusts
MAPTs allow assets to be placed in an irrevocable trust and converted to non-countable assets. Assets are no longer owned by the applicant, and funds from the asset cannot be used to pay for the applicant’s care. Assets are transferred to a beneficiary upon the applicant’s death. Because MAPTs are subject to Medicaid’s Look Back Rule, they are best suited for Medicaid pre-planning rather than Medicaid crisis planning. Trusts must be established by an attorney. Legacy Navigation has many attorneys in our network to whom we will refer you.
Irrevocable Funeral Trust
Medicaid applicants can transfer funds into an irrevocable funeral trust. These trusts are set up to cover the funeral and burial expenses of the Medicaid applicant upon their death. Assets can be reduced by establishing an irrevocable funeral trust. Once assets are placed in a funeral trust, they become a non-countable asset for Medicaid eligibility. They also protect loved ones from the financial burden of funeral expenses.
Medicaid Compliant Annuities
Medicaid compliant annuities are a great option for married couples when only one spouse is applying for Medicaid. This strategy converts countable assets into non-countable income for the non-applicant spouse. How annuities work: A lump sum of assets is paid to a managing insurance company. The company then pays the non-applicant spouse a monthly payment. Medicaid compliant annuities must be irrevocable, and payments must start right away.
Home Protection Strategies
In some states, a home may be converted into a non-countable asset. In some states, a home can be deeded to a spouse as the sole owner, so it does not count as an asset for the Medicaid applicant. Additional strategies may include:
- Life Estate
- Lady Bird Deeds
- Child Caregiver Exception
- Sibling Exception
It is important to plan ahead for home protection strategies because Medicaid’s Look Back Rule may apply.
Benefits of Medicaid Asset Protection Services
Earlier Access To Medicaid
If your assets place you above the threshold for Medicaid eligibility, but the cost of your care exceeds your income, asset protection strategies can help you qualify for Medicaid sooner without needing to quickly spend down your assets.
Extends the Life of Your Funds
Without Medicaid assistance, a senior typically pays for long-term care with savings and income. Because of the high cost of care, even a robust savings account can be depleted quickly, making it difficult to ensure you’re getting the quality care you need for as long as it’s needed.
Prevents Spousal Impoverishment
Many asset protection strategies allow a non-applicant (healthy) spouse to keep living in the family home and convert assets into income. This ensures the non-applicant spouse will not be impoverished by the high cost of long-term care for a spouse whose care needs exceed their income.
How We Can Help Protect Assets From Medicaid
- As Certified Medicaid Planners™, we are well-versed in the rules and regulations for asset protection in every state.
- We start by assessing your unique financial circumstances.
- We’ll develop a customized Medicaid Plan to convert assets where possible and spend down assets where needed.
- Our goal will be to ensure you are Medicaid-eligible and protect your assets to extend the life of your funds.
Getting Started With Legacy Navigation’s Clinical Case Management Services
Contact Us
If you exceed Medicaid’s asset limits but your cost of care exceeds your income, give us a call at 208-204-6004 or fill out our contact form.
Consultation
We’ll have an initial consultation to gather information about your situation and determine how we can help. We’ll ask general questions about your financial situation and your care needs.
Planning
We’ll formulate an asset protection plan based on your unique situation. We’ll provide referrals and assistance in implementing the strategies needed to make you Medicaid eligible.