Creating a Medicaid trust in New York comes with a lot of advantages. It allows you to keep your estate out of the probate court, helps you keep your assets out of the reach of a creditor, etc. If you do your Medicaid planning way before time with the help of an elder care lawyer, you might become qualified for the healthcare program, Medicaid. The program provides long-term care to individuals in their time of need. The government then pays for your home health aides, nursing home, and medical care.
Once you understand the process in detail, it might be possible for you to successfully meet the low asset limit of Medicaid while you protect parts of your assets for your heirs. When you transfer your estate to a family member, you don’t have any control over it whatsoever. A revocable trust allows its creator to rescind or change it. The funds of such trust are considered by Medicaid to be countable funds in establishing the eligibility of Medicaid. Therefore, revocable trusts are not taken into consideration when creating a Medicaid trust in New York.
On the other hand, if you put your assets in an irrevocable trust, the case is quite different. A trust is a legalized arrangement whereby an individual known as a trustee is the nominal owner of a property for the good of other beneficiary/beneficiaries. The creator of the trust and its terms and conditions are taken into consideration when deciding whether trust assets are included in Medicaid’s resources or not. Learn which trusts to use when creating a Medicaid trust in New York.