Elder Law – Asset Protection

Protecting your assets from nursing home costs is a common goal. You want to leave wealth for your heirs, but still need to qualify for Medicaid. In this Q&A article, we’ll break down how to protect your home from nursing home costs, the role of irrevocable trusts in protecting your wealth, and how to avoid triggering Medicaid penalties through gifting.

How Can I Protect My Home From Nursing Home Costs?

Protecting your home from being sold to cover nursing home costs often involves transferring it into an irrevocable trust. In most cases, however, Medicaid will consider your home to be an exempt asset if a spouse or a relative is living there.

Planning ahead is always crucial. Without planning, the State may pursue recovery of care costs from your home after you pass away. An elder law attorney can help you structure ownership to shield your home from potential nursing home claims while ensuring your family retains ownership and control of the property.

What Role Do Irrevocable Trusts Play In Asset Protection?

An irrevocable trust is a critical tool for protecting assets from being used to cover nursing home costs or pay back creditors. Once your assets are placed into an irrevocable trust, they are no longer legally counted as part of your estate for Medicaid purposes, so long as the transfer occurs outside of Medicaid’s five-year lookback period.

While irrevocable trusts allow you to preserve assets and wealth for your heirs while still qualifying for Medicaid, early, careful planning is needed. An attorney can help ensure the trust is drafted in time, carefully, and compliantly.

Can Gifting Assets Jeopardize Medicaid Eligibility?

Potentially. Gifting your assets to friends and family can trigger Medicaid penalties if these transactions occur within Medicaid’s five-year lookback period. This is especially true of large gifts, such as property. Always consult with an experienced elder law attorney before gifting major or valuable assets.

How Can An Elder Law Attorney Help Me Preserve Wealth?

An elder law attorney can use customized legal strategies to help protect your savings, home, and retirement assets from the rising costs of long-term care. Your attorney can create trusts, advise you on how to carefully spend-down assets, and help you understand complex Medicaid rules. These legal strategies can help your family avoid needless financial loss while allowing you to maintain access to long-term care once you need it.

Looking to protect your home from Medicaid expenses in Michigan? Attorney Brandon Wagner can help you and your loved ones plan ahead to protect your health and your property. Have questions, or ready to get started? Reach out to Wagner Law at (248) 577-9933 for an initial consultation today.