Unlock the secrets to securing your financial future even when long-term care is on the horizon. In our latest chat, I, Greg McIntyre, join forces with the astute attorney Samantha Gordon from our Charlotte office to navigate the confusing waters of Medicaid Asset Protection Trusts and Medicaid Crisis Planning. We peel back the layers of these complex legal strategies, revealing how you can shield your assets and ensure your loved ones receive the care they need without draining your bank account. Samantha brings a wealth of knowledge, making this conversation a treasure trove of insights for anyone facing the intimidating prospect of long-term care.
This episode is not just a talk; it's a deep dive into actionable solutions, tailored for those who haven't had the foresight to plan ahead as well as for planners who want to stay one step ahead of the game. We explore the nuances of repositioning assets to meet Medicaid eligibility requirements with the urgency that crisis demands. Our benefits department's expertise in crafting Medicaid-compliant strategies comes to light, offering a beacon of hope in what can often be a stressful time for families. From understanding the intricacies of ladybird deeds to utilizing annuities and real property investments, we leave no stone unturned. Join us as we provide a guide through the labyrinth of Medicaid and asset protection, arming you with the knowledge to make empowered decisions for your future.
Greg McIntyre:
Hi, I'm Greg McIntyre. Welcome to today's edition of the Elder Law Report, where we'll be talking about Medicaid Asset Protection Trusts and Medicaid Crisis Planning, and I'm here with.
Samantha Gordon:
Thank you for having me. All right, let's talk about it All right.
Greg McIntyre:
Medicaid Crisis Planning. What is it? Medicaid Asset Protection Trust what is that? How are they different and how can it help you prepare for a long-term care situation while protecting your assets? Medicaid Asset Protection Trust first. A Medicaid Asset Protection Trust is an irrevocable trust, but a specific type of irrevocable trust made to protect your assets in case you need long-term care. Sam, do you want to say a few words about Medicaid Asset Protection Trust? Sure.
Samantha Gordon:
So what an irrevocable trust is? It's very different than a revocable living trust. Irrevocable living trust is a trust that is attached to you that you manage, whereas a Medicaid Asset Protection Trust and Irrevocable Trust is its own separate entity. It has its own tax ID number. You appoint a trustee, another individual, to manage the assets in that trust, so it is not no longer attached to you. And there are specific reasons why you may want to put assets in an irrevocable trust to set yourself up if, in the event, you need to go on a long-term care benefit for, say, a nursing home.
Greg McIntyre:
Agreed. So that's a plan ahead tool. I put that in the plan ahead tool category, okay, as opposed to what we call Medicaid crisis planning, which is really a situation where I'm sitting down. You're sitting down with a husband, a wife, a child of someone who has maybe assets but needs to apply for a benefit to help pay for assisted living or nursing home care, which are two different benefits. In North Carolina, special Assistance for Assisted Living Care has a three-year look-back period from the date of application. Lawn Trim Care Medicaid has a five-year look-back period from date of application. So that means if we were going in the Medicaid Asset Protection Trust with the house and some retirement assets, things like that, we would have had to have done that outside of those look-back periods, correct, but in this situation we don't have that luxury. We need to do something now and maybe husband, wife, mom, dad they failed to put in place, say, on the home a lady bird deal or place those things in a Medicaid Asset Protection Trust to have that foresight.
Greg McIntyre:
Always better to plan ahead, but we can absolutely do it when we're sitting down talking about what we call Medicaid crisis planning. So in that situation, sam, what might we do? Let's say, if I'm sitting down with a wife, husbands in nursing home care and rehabilitation, going into nursing home care, they have a home, maybe they have several hundred thousand in assets, maybe more. What are some ways that we could maybe position assets?
Samantha Gordon:
So really we have a whole department it's our benefits department and what they do all day, every day, is they are working on these applications with the attorneys to make sure that we can look at these assets and figure out a Medicaid compliant way to set up the assets to ensure that when we apply for long-term care Medicaid which is the government benefit that pays for a nursing home that individual dad, for example, husband would be eligible.
Samantha Gordon:
There's different Medicaid compliant ways, specifically with the house you'd want to do a ladybird deed. A ladybird deed is not affected by that five-year look back period with long-term care Medicaid. A ladybird deed is an enhanced life estate deed where that house can still be in dad and mom's name but you will ensure that after that individual passes away, the house is not going to be subject to a lien from long-term care Medicaid and the house will no longer be theirs and it's protected through a ladybird deed, for example with monies or a big lump sum of money. We'll figure out some Medicaid compliant ways in order to manage that money, to set up dad or husband, to make sure that they're Medicaid eligible. So there are Medicaid compliant annuities that you could do. There's also investing in real property. You can also do something like that as well.
Greg McIntyre:
And move over a certain amount up to what is called the community spouse resource last, the CSRA and everything over that we have to deal with Correct, in a way that complies with the Medicaid rules and doesn't negatively impact dad or husband from getting an approval for that benefit, and there's another big part of this which is thinking about it's.
Greg McIntyre:
You have to hold kind of a lot in Medicaid crisis planning because you're trying not to run afoul of the rules, get the benefit while also not leaving those assets in a status where they can be collected by claim later on Correct, which is absolutely achievable, and we've done that for a long, long time. We love working with families to achieve that. If you or your loved one would like to talk about planning ahead to position assets, to control them and pass them outside of being able to have a claim attached to them, to really open yourself up for benefits, to pay for long-term care and position and protect assets or in a Medicaid crisis planning situation, we would be glad to offer a free consultation to sit down and discuss those and work with you and your family. Give us a call to take advantage of that free consult it's 1-888-999-6600 or schedule directly online at mclverlawcom. Slash scheduling. Thank you, have a great day.