We know how living trusts are helpful in leaving a good financial inheritance for your loved ones, but they're also helpful in keeping your current medical expenses stable after retirement. You can use a living trust to help cover the costs of long-term care should you need it. According to the American Council on Aging, your income must be less than $2, 313 per month for the year 2019 in order to qualify for Medicaid if you're over 65 years old. In the process of reviewing your income, Medicaid reviews your exempt and non-exempt assets. You can set up a Medicaid trust that provides the financial assistance you need while ensuring that you're still qualified for Medicaid. Here is additional information on establishing a Medicaid trust.
How It Benefits You
If you live in a state where there is an income cap regarding your qualification for receiving Medicaid coverage for long-term care, you can put any extra income you earn into a trust to help you be able to receive Medicaid benefits if your overall income exceeds the requirement set by Medicaid. The funds in this trust would reduce some of your income and it increases chances of approval. With a Medicaid income trust, you pay for things such as Medicare premiums and any expenses that Medicaid and Medicare do not cover.
Tips on Establishing The Medicaid Trust
When you set up the trust, you will assign someone to be the trustee over it. Meet with an experienced estate attorney who can assist you during the process and answer questions you may have. You would determine how much of your income would be direct-deposited into the trust. If you receive $700 in Social Security benefits each month, then you might decide to deposit $200 of it into the Medicaid trust.
In conclusion, a Medicaid trust is a neat resource in helping you keep healthcare costs down following retirement.
If you're a retiree who needs help with establishing a living trust, contact us. We offer the assistance that will put you on the right path towards good estate planning.