There are many reasons you might put your assets into a living trust. A living trust is a good way to protect your assets, assign a beneficiary, and still have access to your funds in case of an emergency or unplanned expenses. Many people mistakenly believe that a living trust does not affect Medicaid eligibility because the assets are not in their individual names. However, this is not the case. Here’s what you need to know.
What Is a Living Trust?
A living trust is a revocable trust. Assets are placed within the trust’s framework, and a trustee is assigned to oversee it. Upon death, the trust is relayed to the stated beneficiary. The important part of this explanation is that the trust is revocable. This means that at any time you can take control of the assets yourself and spend them how you wish. This is important because it is the reason a living trust affects your Medicaid eligibility.
How It Affects Medicaid
Because a living trust is revocable and you can access the assets at any time you choose, the trust is considered a liquid asset. Medicaid is a program designed for people who cannot afford medical care, and therefore there are strict asset and income guidelines. If you have enough assets to put into a living trust, it is more than likely too much to be eligible for Medicaid.
If you want other options for protecting your assets that will help you be Medicaid eligible, you should contact our office for a consultation. There are avenues that can be taken to designate your assets before going into a nursing home so that you can still get Medicaid. For more information, or to schedule your consultation, contact us today.