Asset protection for Medicaid includes a set of legal techniques for protecting your assets by transferring them to another person or trust and thereby qualifying for Medicaid. Medicaid is a federally funded health plan that pays for long-term nursing home costs.
According to statistics in the United States, most Americans will live in a nursing home by age sixty-five. The monthly cost of nursing home expenses can reach as high as $5,000 per month and sometimes even exceed $10,000 per month. Because medical expenses quickly consume personal finances, it can have devastating financial consequences. Medicaid applicants have the option to transfer assets in order to safeguard their assets prior to entering a nursing facility. If you want to get more information about Medicaid asset protection then you can hop over the link.
A comprehensive plan is necessary to protect your Medicaid assets. To reduce the number of assets available, you can give your assets to family members or an irrevocable trust. This will allow you to qualify for Medicaid benefits. Transferring during the look-back periods can result in a penalty, which is usually a disqualification period for Medicaid.
Planning for Medicaid asset protection involves many tax considerations, including income tax and gift taxes. A Medicaid plan is usually designed to save significant taxes. Failure to follow tax laws can result in additional taxes being paid.