What is Medicaid? How do you qualify for this government-funded program? How does it work? These are the important questions you should ask before applying. I have answered these questions below.
What is Medicaid?
Medicaid is an insurance program designed for individuals who cannot afford health care expenses. These individuals ranges from seniors, low-income families and disabled individuals. In some states, pregnant women and children are added to this category. Medicaid is jointly funded by the state and federal government.
Worthy of note is that, not everyone will enjoy Medicaid benefits. Whether you qualify for this program depends partly on whether your state has widened its program. Medicaid benefits vary fairy between states.
You can apply for this government-funded health care program anytime. If you are eligible, your coverage can start pronto, any time of the year.
Qualifying for Medicaid
Medicaid, like some other government-funded programs comes with certain eligibility requirements. To be eligible for this program, your assets and income needs to be below a certain threshold. However, you still have a shot at enjoying Medicaid benefits if your assets and income are above the threshold hold but to qualify you will have to setup a Medicaid asset protection trust. A Medicaid asset protection trust is a trust designed to protect your assets and allow you to qualify for Medicaid.
Who is Medicaid for?
The Medicaid program is designed for specific groups of people. These people include:
- Pregnant women with inadequate income
- Children of low-income families
- Children in foster care
- Individuals plagued with all sorts of disabilities
- Seniors with low income
- Parents or caregivers with inadequate income
States may decide to expand eligibility to other groups of individuals, such as individuals with low income who may or may not have children
What is Medicaid Asset Protection Trust?
As the name implies, a Medicaid asset protection trust is a trust tailored to protect assets from being counted for Medicaid eligibility. A Medicaid asset protection trust allows an individual to qualify for long term care benefits from Medicaid, while safeguarding assets from being used up if long-term care is required
How does Medicaid Asset Protection Trust Work?
After qualifying for Medicaid, you will be provided with a medical card and benefits that you can use. It is just like a health insurance coverage from an insurer. The only difference between the two is that a Medicaid id free.
Determining eligibility for Medicaid can be complicated. In addition, understanding how it works can be quite difficult as well. If you wish to apply for Medicaid, don’t hesitate to contact a Medicaid attorney or an elder law attorney.
So, back to the crux of this article, How does Medicaid asset protection trust work?
Also regarded as an Income only trust, a Medicaid asset protection trust designate an individual other than you or your spouse as the trustee, usually one or more adult children, and restricts you to the income. The principal must be unavailable for it to be protected.
A MAPT is ideal for the family home as well as for the assets the client is only taking the income form or is basically reinvesting. The Medicaid applicant lifestyle is not affected since they continue to get their pension and Social Security Checks directly, they retain the right to use and occupy the home. In addition, they preserve the tax exemptions on the home. The trust may sell and trade assets via the trustee designated by the potential Medicaid applicant. However, the parents keeps some measures of control by retaining the right to alter the trustee if they are unsatisfied.
The Medicaid Asset Protection Trust is subject to a look-back period of around five years. This denotes that if assets are sent to the trust and the potential Medicaid applicant requires nursing home care any time after five years, the assets in the trust are protected. Nevertheless, it is best to get started, since you receive credit for the time you accumulate, even if you don’t make the five years. For instance, if the potential Medicaid applicant require nursing care, then he or she will have to pay for the one year that remains.
Need a Medicaid Lawyer?
If you need a Medicaid lawyer, don’t hesitate to contact us. We boast of some of the best Medicaid lawyers and they are all capable setting up a Medicaid asset protection trust and handling issues related to Medicaid.
