Angel Kane
Elder Law / Estate Planning Attorney
Medicaid Asset Protection Planning with Kane & Crowell
Medicaid planning is an essential estate planning strategy aimed at qualifying you for Medicaid Benefits in the future. At the heart of this strategy is the formation of a Medicaid Asset Protection Trust.
How Kane & Crowell can help support you and your family.
At Kane & Crowell, our attorneys can help you or your family devise long-term care plans. This proactive approach will help avoid draining assets if you become ill and require long-term care. We can assist in preserving some of your assets, even if you are already in a nursing home, even without prior planning. Additionally, we can help you qualify for Medicaid benefits before resources are depleted.
Benefits of Medicaid Asset Protection Planning
By creating a strategy to safeguard your assets with Kane & Crowell, you can enjoy the following advantages:
Safeguard Personal Assets
Once your assets are in a MAPT and other criteria are met, Medicaid cannot seize them or ask you to spend them down to pay for your long-term care costs or nursing home.
You Choose Your Beneficiaries
A MAPT also serves as an estate planning tool because you can designate who receives what remains of the trust upon your passing.
Benefit From the Assets
If you transfer investment accounts to the MAPT, although you relinquish ownership, you can still receive the income generated from the investments.
Protection From Taxes
A properly drafted MAPT can avoid or significantly minimize the capital gains tax that your heirs may owe.
Medicaid Planning with Kane & Crowell
Preparing for Medicaid eligibility and long-term care, including in-home care, nursing home, or assisted living, requires proactive Medicaid planning. This way, if the need arises, Medicaid can help cover these costs.
Successful Medicaid planning adheres to precise rules, failure to comply with which can lead to disqualification from benefits during a "penalty period."
At Kane & Crowell, our Medicaid planning program is not about giving away all your assets to qualify for Medicaid. Instead, it's a comprehensive planning strategy that adheres to the law. We want to enable you to legally retain what's needed for your lifestyle. And, become eligible for Medicaid without losing a lifetime's worth of assets.
Consult with one of our attorneys to discover how you can protect all you've earned. We are here to discuss how to still be eligible to receive benefits under federal guidelines.
Not All Trusts Are Created Equal
That said, not all trusts are created equal, it's important to find the right asset protection attorney to guide you. If you're searching for an asset protection attorney near you or in the Nashville and surrounding area, consider Kane & Crowell. Ensuring proper trust creation, tailored to Medicaid requirements in your specific state is how we can help. We have a team dedicated to Medicaid asset protection. We will guide you through the creation of asset-protection trusts. Therefore, helping you navigate the often complex and frequently changing rules of Medicaid Asset Protection.
Seek advice from an experienced asset protection attorney to ensure proper setup and compliance with Medicaid's rules. Furthermore, if you’ve been searching for an asset protection attorney in Nashville, Mt Juliet, Lebanon, or the surrounding area, contact us today. We will guide you in protecting your assets from Medicaid.
Kayla M. Costley, Attorney
Lindsey Waller Johnson, Attorney
MAPTs & Medicaid Asset Protection Planning
Are you considering protecting your assets from Medicaid and wondering, "What is a Medicaid Asset Protection Trust (MAPT)?" or "Does a trust protect assets from Medicaid?" A Medicaid Asset Protection Trust can serve as an invaluable strategy for meeting Medicaid's asset limit if you have excess assets.
MAPTs protect the assets of a Medicaid applicant from being counted for eligibility purposes. It's a plan to make someone, who would otherwise be ineligible for Medicaid, qualified to receive the care they require. This method of asset protection for Medicaid applicants is also beneficial to your family as it secures assets for your children and other relatives. These trusts are sometimes referred to as Medicaid Planning Trusts, Medicaid Trusts, or more casually, Home Protection Trusts.
If you're asking, "Does a family trust protect assets from Medicaid?" or "Does a revocable trust protect assets from Medicaid?", the answer is typically no. Family trusts, or revocable living trusts, are different from MAPTs. These types of trusts often fail to protect money and assets from Medicaid. This is due to their revocable nature and language allowing for the funds within the trust to be used for the Medicaid applicant's long-term care costs.
While planning for Medicaid and asset protection, it's also essential to ensure you have a properly drafted Will in place to manage the distribution of your assets after death. Learn more about creating a Last Will & Testament here.
Learn How We Can Help Protect Your Assets
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Common Questions About Medicaid Asset Protection
Does an irrevocable trust protect assets from Medicaid?
To qualify for exemption from Medicaid's asset limit, the trust must be irrevocable, meaning it cannot be canceled or altered. So, yes, an irrevocable trust can protect assets from Medicaid.How much does a Medicaid Asset Protection Trust cost?
The cost to create an MAPT can range significantly from $2,000 to $20,000. Though the upfront price may seem steep, consider the long-term savings as the average cost of nursing home care is over $7,500.00 to $10,500 per month.Is Medicaid asset protection legal?
Yes, Medicaid asset planning is not only legal, it is thoroughly vetted and reviewed by the State of Tennessee as we must show the State a paper trail of everything we did on the asset protection side.When should you recommend a Medicaid Asset Protection Attorney to someone you know.
Everyone who is 60 years or older should meet with an Asset Protection attorney. Eighty percent of us are going to require long term care at some point in our lives. You have everything to gain and nothing to lose by meeting with an Asset Protection Attorney.More Information About Medicaid
Medicaid vs. Medicare: Clearing up Confusion
Medicaid is a federally sponsored long-term care program, available to the financially eligible irrespective of age. However, you must meet specific income and asset requirements. If you exceed these limits, exceptions might still make you eligible. If not, you can initiate Medicaid planning to safeguard your future eligibility.Often, people conflate Medicaid and Medicare. Medicare, distinct from Medicaid, is a federal health benefit available to individuals over 65 or under 65 who have been Social Security-disabled for at least two years.
Asset Gifting and the "Safe Harbor" Rule
When it comes to gifting assets, there's a "Safe Harbor" for assets given away more than 5 years before applying for Medicaid. In Tennessee, a 5-year or 60-month lookback period is considered to check if any assets were transferred. If no gifts were made within this period, any gifts given more than 5 years ago will be disregarded for the asset eligibility test for Medicaid.Remember: Medicaid Planning is Case-Specific
It's crucial to understand that Medicaid planning is highly fact-specific, and not every planning technique applies to all situations. Before transferring or reducing your assets, reach out to our office to schedule a private consultation to discuss Medicaid benefits and review your planning options.Asset protection planning is not just for the wealthy. If you have any property, money, or investment you want to protect, creating a plan with Kane & Crowell can help. Making plans proactively at an early stage can protect more of your assets. Contact our team today for a consultation on protecting your assets and legacy.
Don't Wait Until It's Too Late
Contact Angel, Kayla, or Lindsey with Kane & Crowell
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