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Adapting your estate plan to accommodate your long-term care needs

On Behalf of | Jun 4, 2022 | Uncategorized

Many people who plan for retirement do not consider their possible long-term care needs if they become incapacitated. However, according to the Administration for Community Living, most adults will require assistance with essential living functions at some point in their lives.

Creating an irrevocable trust while independent and healthy can ensure you qualify for Medicaid benefits to get the essential care you need while still leaving an inheritance to your heirs.

What is a Medicaid Asset Protection Trust?

A Medicaid Asset Protection Trust is a solution for anyone who wants to preserve portions of their estate for their loved ones. However, in Indiana, Medicaid reviews individuals’ finances over the five years before applying for benefits to ensure they are not shielding assets that would disqualify them. Therefore, it is essential to put your assets into a trust at least five years before submitting your Medicaid application.

Can a Legacy Trust help with Medicaid eligibility?

Recently, the Indiana legislature passed a law allowing individuals to shield their assets from creditors by placing them into a Legacy Trust. Like a Medicaid Asset Protection Trust, a Legacy Trust is irreversible and will not protect a trustor’s assets from scrutiny under pending circumstances. Unlike an Asset Protection Trust, a Legacy Trust will not help someone qualify for Medicaid. Whereas trustors waive their access to an Asset Protection Trust’s holdings, they may retain certain rights and control over those in a Legacy Trust, including using them to fund their care.

It is impossible to predict what the future holds, but you can take steps to protect your loved ones by taking charge of your own future needs.