A Medicaid trust can be used to keep assets protected while still ensuring that the individual is eligible to receive Medicaid.
Many people are worried about protecting their assets from the costs of long-term care. This is why some people purchase long-term care insurance policies. However, these policies can be very expensive and many cannot afford to pay the monthly premiums. In addition to purchasing long-term care insurance, another option you may have is to create a Medicaid asset protection trust.
To be eligible for Medicaid, an applicant must have assets under a certain level. Medicaid applicants can create a Medicaid trust to hold their extra income and assets which can allow them to receive Medicaid benefits. A Medicaid asset protection trust shields Medicaid applicants’ assets from being counted in determining their eligibility for Medicaid.
Seeking the legal advice of an experienced New Jersey Medicaid Trust attorney is important if you are a New Jersey resident facing the prospect of having to move into a nursing facility. Matus Law Group’s team of experienced Medicaid planning lawyers provides clients with skilled planning for asset protection. We will evaluate your financial situation and help you determine your options when it comes to Medicaid eligibility.
To schedule an initial consultation, contact us at (732) 281 – 0060.
A Medicaid asset protection trust (MAPT) is an account set up by a Medicaid trust lawyer to help protect your assets if you need to avail government aid for long-term care. The income from the account can be used to pay for some of your expenses, and any money left over in the account goes to your heirs. This account allows the individual to put money away for other living expenses, while still remaining eligible for Medicaid coverage.
Often, in order to meet the income limit set forth by Medicaid, applicants believe that they can give their assets away. Unfortunately, this is not the case. Transferring assets can instead result in penalties that could prevent an applicant from being eligible for Medicaid for a certain amount of time. This is where a New Jersey Medicaid trust may come in. This kind of trust may be able to help an individual prepare for their future long-term care.
A well-designed Medicaid trust can make all the difference when it comes to your Medicaid eligibility. In a Medicaid trust, the government will not be able to tap into the individual’s assets and use them to pay for the Medicaid costs. A Medicaid trust can be used to keep assets protected while still ensuring that the individual is eligible to receive Medicaid. Seeking the legal advice of an experienced New Jersey Medicaid trust lawyer is very important. Schedule a consultation with the Matus Law Group today to learn more about Medicaid trusts.
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To set up a Medicaid asset protection trust, you will need to choose a trustee and beneficiary (or beneficiaries). The settlor or grantor is the person responsible for creating the Medicaid asset protection trust. The assets owned by the trust will be managed by the trustee that was appointed by the trust-maker.
The trust agreement clearly outlines how assets can be used. Trustees are responsible for adhering to these provisions. The trust grantor will have to name a beneficiary (or beneficiaries) who will receive the Medicaid trust upon their death. In order for the assets in the trust to be exempt from Medicaid eligibility, the principal beneficiary must be someone other than the grantor.
The rules regarding the setup of a MAPT may be complicated to navigate. This is why it is important to seek the help of an experienced New Jersey Medicaid attorney. A skilled lawyer may be able to assist you in setting up a trust that will help you protect your assets.
Call the Matus Law Group today at (732) 281 – 0060 to schedule a consultation with our experienced Medicaid planning lawyers.
Medicaid will require financial documentation going back five years which is known as the “lookback period.” When a person applies for Medicaid benefits, Medicaid will look at their financial document from the prior five years. These documents will include bank statements, investments, real estate sales or purchases, and asset or property transfers. Medicaid will look at these documents closely in order to ensure that the individual who is applying for Medicaid did not deliberately impoverish themselves in order to qualify.
An individual must not have transferred any assets during this lookback period in order to qualify and avoid penalties. For example, it is not possible to move in January into a qualifying facility, then transfer assets to someone else in February and qualify for Medicaid in March. Medicaid has a strict penalty against assets that are transferred in the lookback period for less than their fair market value.
Nevertheless, certain asset transfers are allowed and exempt from the five-year lookback period. Asset transfers are permitted to certain individuals, such as spouses, disabled children, and trusts for the benefit of a handicapped adult under the age of 65.
The individual may also be allowed to transfer a house. Medicaid applicants may transfer their home without being penalized if the transfer is made towards their spouse; to a child younger than 21 years; to a blind or handicapped child; or to a trust to benefit a disabled person below 65 years of age. The applicant may also transfer the home to their child provided that the child has lived in the house for at least 2 years, and provided care for the Medicaid applicant which allowed the applicant to not enter a nursing home.
The rules for Medicaid eligibility can be strict and complicated. If you want to apply for Medicaid, it is important to contact an experienced Medicaid planning attorney to explore what other choices you may have. An experienced lawyer may be able to help you understand your rights and responsibilities and ensure that your assets are protected.
Call the Matus Law Group today at (732) 281 – 0060 to schedule a consultation.
New Jersey Division of Medical Assistance and Health Services (DMAHS) has published Medicaid Communication #22-01. This communication provides new numbers relevant for applications to Medicaid Long Term Services and Supports (MLTSS) benefits.
MLTSS covers nursing home care, part-time home care, as well as assisted living facilities care. The eligibility for this benefit is based on the income and resources of the applicant. If the applicant is eligible, the start or delay of the benefits will be determined by any transfers or gifts made during the 5-year lookback.
In 2022, the maximum amount of non-excluded resources that a married couple can have is $2,000. The amount of non-excluded resources that a spouse of the applicant must have at their disposal must not exceed $137,400 or half the amount that the couple has at the time of the applicant’s institutionalization, whichever is less. This amount is referred to as the Community Spouse Resource Allowance or “spousal share”. The CSRA does not have to be lower than $27,480.
The applicant may retain some of their monthly income after approval as Personal Needs Assistance or PNA. In 2022, the PNA amounts are the following:
Assisted living – $124.70
Home Care – $2,523.00
Skilled Nursing Facility – $50.00
Qualified Income Trusts (QITs) may also be established for applicants whose monthly gross income is greater than a set amount. Qualified Income Trusts are also known as Miller trusts. This type of trust lets you keep a portion of your income separate from the rest under a legal trust agreement. In 2022, the income threshold for a QIT is $2,523.00.
The MLTSS program has many legal traps that seniors and people with disabilities must avoid. This is why careful planning will help preserve assets, protect applicants and their families, and ensure eligibility for Medicaid. At the Matus Law Group, we understand how important it is to protect the assets you’ve worked so hard for.
Call us today to schedule a consultation and learn more about how our Medicaid Planning lawyers may be able to help.
People often think that hiring an attorney will cost more than doing things on their own. However, an experienced Medicaid planning lawyer can help you save money in the end. When filing for Medicaid eligibility, you and your family may discover that you don’t have the right eligibility criteria. Or you may also discover that there are mistakes made in the application that would cost money to fix.
A skilled lawyer can help you to save money by making sure that all the details are correct from the get-go. An experienced legal professional can help you get insurance coverage quicker and save you money on costly nursing homes and assisted living while waiting for your Medicaid eligibility.
An experienced Medicaid planning lawyer can help you avoid penalties from the lookback period and help you explore many strategies you can use to save more money. A skilled lawyer may also be able to give advice on Medicaid-compliant annuities that allow for financial independence, so it is possible to leave a lasting legacy for your children.
The Matus Law Group has been helping families for years plan their loved one’s long-term care. Our skilled team of Medicaid planning lawyers understands the importance of protecting the client’s assets while also helping them receive Medicaid benefits.
Speak to our experienced lawyers today. Call us at (732) 281 – 0060.
Knowing the income limit, penalty periods, and rules of Medicaid eligibility can help you and your loved ones protect assets you have worked hard to earn. These rules and issues should be familiar to everyone, whether you’re a caregiver or someone who needs coverage. A competent Medicaid planning lawyer might be able to walk you through the requirements and help you minimize any financial fallout related to your Medicaid eligibility.
New Jersey regulations are subject to change every year so it is a smart idea to meet with a Medicaid trust attorney to explore your options. Matus Law Group’s team of skilled legal professionals is familiar with all aspects of the changing law and may be able to help you navigate the complicated process of creating a Medicaid trust.
Contact our team to find out more about our Medicaid or estate planning lawyers services that can help you and your loved ones get the asset protection and coverage you need.