Lisha A. Seery, LLC

Medicaid trusts can help you secure long-term care in Missouri

On Behalf of | Sep 7, 2022 | Medicaid Planning |

A proper long-term care program that provides for everything you might need, as well as conditions that may emerge as the body gets weaker with age, can be expensive. So, the government established the Medicaid program to cover the cost of care the elderly need in their most vulnerable time. But this help is only limited to individuals with few assets or less income. Therefore, if your savings, pensions or income from other sources are too high for you to qualify but not enough to cover your long-term care costs on your own, creating a Medicaid trust in Missouri could be beneficial for you and your family.

Understanding Medicaid planning

Medicaid planning is a segment of estate planning involving the transfer of ownership of your assets to a trustee—an individual or institution that manages the property according to the terms of the trust agreement—to qualify for Medicaid coverage. If done correctly, it can help ensure you have access to the long-term care services you need without depleting your savings or assets.

Things to consider when creating a Medicaid trust

One great hurdle that most people face when creating a Medicaid trust before applying is the “look back” period. This is a five-year period where the state will look at your financial history to see if you’ve made any large gifts or transfers of property. If they find that you have, then you may be ineligible for Medicaid benefits during that time.

Another consideration is finding your perfect trustee—someone who will manage the property in the trust—before the Medicaid application process begins. Since this trust is irrevocable, you won’t be able to change the trustee or your terms later on. So, it’s important that you choose someone you trust implicitly to make financial decisions on your behalf.

Although it may seem like such a task to create a Medicaid trust, it offers great benefits to people besides letting you qualify for government assistance. For instance, it can enable you to leave something behind for your heirs, if you name them as beneficiaries of your trust. It also gives you more control over your assets. For instance, if you have a home, the government might force you to sell it to recoup any money spent on your behalf. But, with a Medicaid trust, you can specify that your home is not to be sold, no matter what.