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A Medicaid Trust is a type of irrevocable Trust, which means that it cannot be modified, amended, corrected or changed easily in the future. This type of Trust purports to hold your assets in trust prior to your future admission into a nursing home and to dissociate you from your property to exclude it from your assets before the determination of your qualification to Medicaid. Similarly to other Trust Agreements, a Medicaid trust is set by a grantor (an elderly, in general) and will name a trustee to manage the trust assets for the benefit of the beneficiary. A Medicaid Trust is unique and singular as it is framed by very specific rules: For example, in order to ensure that Medicaid will agree to let you include your property in the trust, it is imperative for you to operate transfer of your property into the trust for over five years prior to your admission into an elderly facility/ nursing home or at least five years prior to your application for long term healthcare. This period is referred to as the “5 years lookback period”. An experienced elder law attorney will be able to answer your questions regarding the specific requirements for a valid and successful Medicaid Trust.
Setting up a Medicaid Trust will help you benefit from state or federal programs such as Medicaid even if you normally did not qualify based on the value of your assets, the property you own or your various sources of income. Often, our clients asking for a Medicaid Trust initially do not qualify for Medicaid but simultaneously do not earn sufficient income in order to afford the necessary and adapted health care insurance coverage. Therefore, setting up a Medicaid Trust is often the best option and the most adapted solution to these clients.