Accessing quality medical care for you and your family is an essential part of living well. It frees you up to know that your family and you are well taken care of in the event of a medical emergency or any other health-related needs. That is why getting a Medicaid trust can be a great move for you and your potential benefactors. As a new user, here are some FAQs for you to consider during your application:
What is a Medicaid trust and what does it do?
This is a trust that allows you to be able to qualify for Medicaid despite your income or assets being over the allowed limit for getting Medicaid. This legal entity helps to shield your income and your assets from being considered when your Medicaid eligibility is being decided.
With a Medicaid trust, the government can pay for your home health aides, your medical care, and your nursing home’s fees. With a New York state Medicaid trust, you can help to protect the assets you own and leave your estate to your family instead of using them to finance your medical and nursing home care.
What do I need to get a Medicaid trust?
It is not a simple thing to form a Medicaid trust like KTS Pooled Trust, and you should, therefore, be sure to work with an experienced attorney to handle the matter for you. Otherwise, you might risk having Medicaid reject your trust or approve it and come after your assets in the future. The document should be drafted correctly and funded accordingly so that the relevant assets are transferred to your trust.
A valid Medicaid trust usually has a trust document with the terms of the trust, a grantor that gives property to the trust, a settlor that sets up the trust, a trustee that manages the trust, beneficiaries benefiting from the trust, and a property that is transferred to the trust. You can have multiple trustees, grantors, settlers, and beneficiaries of your Medicaid trust.
What does the trustee do?
The work of the trustee is to follow the guidelines meted out in the trust agreement and also follow the New York trustee law. They do not take property for themselves but simply manage it. A trustee, therefore, has to be someone you trust and it could be your close relatives such as your sibling, child, niece, or nephew. It could also be a third party such as your accountant, financial advisor, or your attorney, or a company. You or your spouse cannot be trustees for your Medicaid Trust.
Will I maintain control over my property when I make a Medicaid trust?
Once you have put a trustee over your property, the control you have over it is limited, as you do not get to dictate how your trustee will manage your property. Your level of control is minimal because you may be able to make non-binding suggestions to your trustee on how to manage your property. You can also determine or change who gets the property after you die by using the power of appointment.
Can I cancel or revoke my Medicaid trust?
You can revoke your Medicaid trust after the involved parties sign consent on that effect. This will include you, your other trust contributors, your trustees, and your beneficiaries. Once you revoke your Medicaid trust, you lose its Medicaid protection benefits. On top of not qualifying for Medicaid, you will retroactively be responsible to pay back all benefits received from Medicaid while you had the trust.
There are equally a lot of non-medical benefits to having a Medicaid trust such as ensuring that your family assets are protected and that your estate is well-protected while maintaining privacy. In light of these many advantages, you can consult with an attorney that will get you started on setting up a Medicaid trust and helping you get the most out of it.