Medicaid can be a powerful tool for seniors residing in Texas and elsewhere. The program can help pay medical and nursing care costs, which can easily cost tens of thousands of dollars per year. However, this program is only available to those who meet income and asset requirements. Creating a Medicaid trust may make it possible to qualify for the program without losing a home or other valuable assets.
The trust owns your assets
By creating a Medicaid trust, ownership of a home, car or other property transfers from your estate to the trust itself. Therefore, when the government reviews your finances, it will appear as if you fall within the established income and asset guidelines. It’s important to note that the trust must be in existence for five years before you will qualify for assistance.
You can still live in your home
Creating a Medicaid trust may be ideal for those who want to remain at home for as long as possible. This is because you can still live in your principal residence even after transferring it into a trust. However, if necessary, Medicaid will help pay for costs associated with living in a nursing home. It may also help cover the cost of an extended stay in a senior facility after having surgery or undergoing other medical procedures.
Your kids can manage the trust
Another key benefit of the Medicaid trust is that your children can serve as trustees. Therefore, you know that someone who you trust to look out for your best interests will manage your assets on your behalf. If necessary, you can name another family member or a professional trustee to this role. Convening a Medicaid planning session may make it easier to determine who is most capable of managing your affairs.
As you age, you are more likely to need medication, in-home care or other forms of assistance. The use of a trust may make it easier to qualify for government assistance programs that allow you to access the care you need without causing financial hardship.