Fratello & Fox, P.C.

516.496.0730

ATTORNEYS AT LAW

             You have worked hard during your life and accumulated assets.  What happens if you need long term care such as the assistance of nurses and/or aides in your home or nursing home care? 

 

             Long term care costs have skyrocketed with some nursing home care costing more than $14,000.00 per month.  Without careful planning, many seniors are forced to use their hard earned assets to pay for long term care until it has been diminished so that they can qualify for Medicaid.  Medicaid is a governmental program that pays for long term care.  Eligibility for Medicaid benefits depend on an applicant’s (and spouses) income and assets. 

 

             A properly drafted Medicaid Trust can help alleviate the financial and emotional stress associated with applying for future Medicaid benefits.  The Medicaid trust can protect the principal of the trust for five years after the last transfer to the trust and can provide a continuous source of income.  The Medicaid Trust is an irrevocable trust which means that it is difficult to amend or terminate.  Additionally, there is limited availability of trust principal.  If there comes a time when Medicaid services are needed and five years have passed, trust assets may be preserved for your heirs.  In addition, you receive income from the trust.

 

             It is not uncommon for residents on Long Island and in New York City to have a home as their largest asset.  Many clients choose to protect their home by transferring it to a Medicaid Trust.  If you decide to sell the real estate in the trust, a new home or the sale proceeds receive the same protection.  The home will still qualify for property tax exemptions while owned by the trust.

 

             The Medicaid trust is a useful tool in Medicaid planning.  Advanced planning is the key to successful planning.     

 

Dated: 10/2007

Protect your assets - the Medicaid trust

The information in this website is intended for information only and does not represent legal advice.  Receipt of materials from this website does not constitute an attorney-client relationship between Fratello & Fox, P.C. and the receiver.  Professional counsel should be sought before utilizing any information contained in this website.