FAQ Friday: Medicaid Asset Protection Trusts

On Friday, April 21st, Attorney Steven Berger describes Medicaid Asset Protection Trusts.

These are irrevocable trusts. If you place all your assets in this trust and file a gift tax return, it might help you qualify for Medicaid.

You could possibly earn income on your trust, however if you do it would go toward the nursing home.

You could receive a step up in basis if you stay in your home. There would be lifetime beneficiaries because once the assets are placed in the Trust, you no longer have right to them.

You should choose a trustee you feel is most trustworthy. That person can distribute assets to themself and make payments toward medical expenses.

You also have the option to choose different beneficiaries upon death.

These are complicated trusts and doesn’t apply to everyone. However, if it does interest you, we would be happy to refer you to someone who specializes in elder law.

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