A Medicaid trust is a legal tool that can hold, manage, and protect assets during eligibility checks. Setting up a Medicaid Asset Protection Trust is generally straightforward. However, many lawyers step back once the trust is created.
Medicaid Trusts in New York State
Medicaid trusts can be set up to help the you keep Medicaid benefits eligibility even if their income or assets are above the allowed limit. A Medicaid Asset Protection Trust can help you continue to receive:
- Medical benefits
- Home care assistance
- Nursing home reimbursement
While Medicaid trusts offer several key benefits, they are often used to save an estate for future inheritance. By creating a trust, New York residents can get essential medical care without spending large sums out-of-pocket.
Establishing and Protecting a Medicaid Trust
Setting up a Medicaid trust is usually a simple process. Prospective trustors need to file and sign trust documents with the correct legal language. Once the trust is filed, the trustor can move assets into it. However, because Medicaid Asset Protection Trusts are regulated by the state and watched by the federal government, any mistake—no matter how small—could lead to rejection. In some cases, Medicaid officials may ask for benefits to be repaid if they think a Medicaid trust was not properly set up. Since creating and managing a trust can have unexpected challenges, most New Yorkers have a lawyer draft their trust.
How an Attorney Could Help You Ensure Your Trust’s Longevity
A lawyer can help you through the early stages of trust preparation and formation. However, few firms offer ongoing support after the trust is signed and filed. The Alatsas Law Firm, however, provides long-term trust support to our clients. Among the services available, we could:
Help You Fund Your Trust
A Medicaid Asset Protection Trust is only effective if it is funded. Like other trusts, a Medicaid trust can hold various assets. A Medicaid trust could hold and manage:
- Residential real properties
- Commercial real properties
- Motor vehicles
- Bank accounts
- Savings accounts
- Investment accounts
Because Medicaid Asset Protection Trusts are a type of irrevocable trust, they cannot always be changed later to reflect the trustor’s new circumstances. A Medicaid trust lawyer could help you create a custom plan to ensure you keep maximum control over trust assets.
Enact Legal Transfers
Since trusts are separate legal entities, they can “own” assets titled in their name. A trust that owns assets is a funded trust. However, the person who sets up the trust—the trustor—must re-title certain assets before they can be moved to the trust. Re-titling can involve a lot of legal work. While most banks and other financial institutions have established procedures to help with transfers, getting the documents needed to complete a transfer can be difficult. The Alatsas Law Firm offers all our Medicaid Asset Protection Trust clients a full five years of continued support for legal transfers.
By following these steps, you can ensure that your Medicaid trust is properly set up and maintained, providing you with the benefits you need while protecting your assets for future generations.
Medicaid trusts, like other irrevocable trusts, need a third-party trustee to manage them. Trustors and trustees should stay in close contact during the initial stages of trust setup and work together on asset transfers and re-titling. The Alatsas Law Firm can assist you and your trustee with these transfers and evaluate the effects of various legal strategies.
