A Medicaid trust allows individuals to protect their assets and funds from being regarded as resources in the process of qualifying for the Medicaid healthcare program. It keeps your valuable estate away from the probate court and prevents creditors from confiscating or misusing your assets. Once you create a Medicaid irrevocable trust and sign it, an entirely new legalized entity takes form.
An individual who desires to be a future Medicaid recipient is advised to place their assets in an irrevocable Medicaid Trust. This practice allows the recipient to use the assets in the same manner as before. However, since their estate is held by the trust rather than themselves, the government doesn’t take those assets into account for healthcare qualification purposes.
Non-qualified annuities, money-market accounts, real estate, savings account, stocks, mutual funds, life insurance and other funds can be transferred to your Medicaid trust. However, when it comes to placing assets in a Medicaid trust, there is one restriction; qualified funds cannot be put into an irrevocable trust. Such practice can provoke income tax issues.
Creating a Medicaid trust allows individuals to:
• Protect their eligibility for Medicaid healthcare program
• Keep their assets private
• Keep their funds out of the probate court
• Avoid any multi-state probate affairs
• Plan for special need individuals
• Enable only their immediate family members to access their assets
In these articles you will learn all about which trusts to use when creating a Medicaid trust, how a Medicaid trust enables individuals to qualify for Medicaid healthcare services, what types of funds can be placed into a Medicaid trust and more.
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