Why should you plan for long-term care? Because at least 70% of people over
65 will require long-term care services in the future. And, contrary to what
many people believe, Medicare and private health insurance programs do not pay
for the majority of long-term care services that most people need. Don't be
caught off-guard. Planning is essential for you to be able to get the care you
might need.
One useful long-term care planning technique is to create a Medicaid Asset
Protection Trust. With a Medicaid Asset Protection Trust, you can transfer some
of your property to the trust to hold and manage for your benefit during your
life with the remainder paid to your family after your death. You can be the
trustee of your trust. All of the income is paid to you during your life and the
assets in the trust are protected from Medicaid.
One potential pitfall is that a transfer to this type of trust can cause a
period of ineligibility for Medicaid benefits. A Medicaid Asset Protection Trust
is not for everyone, but it can be a means of protecting a family's financial
security. These trusts can be complicated and must be tailored to each family’s
resources and needs. It is important that you use an elder law attorney who is
familiar with the Medicaid laws and who has experience in creating this type of
trust.
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