Medicaid Eligibility And Trusts

Summary

To qualify for Medicaid in New York, income and asset limits apply. The 2023 income limit is $1,677/month, and the asset limit is $16,800. Consider Medicaids spend down program or property exemptions. Irrevocable trusts protect assets from Medicaid after a 5-year look-back period, while revocable trusts do not. Setting up trusts requires consulting an attorney. The look-back period prevents asset transfers to qualify for Medicaid, with penalties for transfers during this time. Drafting an irrevocable trust involves consulting an attorney, drafting the document, and transferring assets.

Full Conversation

Please share information on Medicaid spend down, irrevocable trust, and revocable trust to protect my assets from Medicaid.
Sure, here’s a summary of each:
- Medicaid Spend Down:
- Purpose: Allows individuals to reduce their income/assets to qualify for Medicaid.
- Methods: Pay for medical bills, home improvements, or purchase exempt assets.

- Irrevocable Trust:
- Purpose: Protects assets from being counted by Medicaid.
- Key Points: Once assets are placed in the trust, they cannot be removed or changed by the grantor.
- Revocable Trust:
- Purpose: Allows management of assets and avoids probate.
- Key Points: Assets in a revocable trust are still considered available to the grantor and can be counted for Medicaid eligibility.
Would you like more detailed information on any of these?
Please share more details on irrevocable and revocable trusts in New York State
Sure, here are more details on irrevocable and revocable trusts in New York State:
- Irrevocable Trust:
- Purpose: Protects assets from being counted by Medicaid.
- Key Points:
- Once established, the grantor cannot alter or terminate the trust.
- Assets in the trust are not considered for Medicaid after the look-back period (typically 5 years).
- Revocable Trust:
- Purpose: Manages assets and avoids probate.
- Key Points:
- The grantor can change or terminate the trust at any time.
- Assets remain available to the grantor and are counted for Medicaid eligibility.
Would you like more information on the look-back period or how to set up these trusts?
Please share more information on the look-back period and how to set up these trusts
Sure, here's more information:
Look-Back Period:
- Length: 5 years.
- Purpose: Prevents asset transfers to qualify for Medicaid.
- Penalty: If assets were transferred during this period, a penalty period may be applied.
Setting Up Trusts:
- Irrevocable Trust:
- Consult an elder law attorney.
- Draft the trust document.
- Transfer assets into the trust.
- Revocable Trust:
- Consult an estate planning attorney.
- Draft the trust document.
- Transfer assets into the trust.
Would you like to know more about the potential penalties during the look-back period?
Can you draft an irrevocable trust
Drafting an irrevocable trust is a complex legal task that should be done with the assistance of an attorney to ensure it meets all legal requirements. Here are the basic steps:
*. Consult an Attorney: Find an experienced elder law or estate planning attorney.
*. Draft the Trust Document: The attorney will draft the document, specifying the terms and beneficiaries.
*. Transfer Assets: Move the desired assets into the trust.
Would you like a referral to an elder law attorney?