Are you reaching the age where you may need to consider long-term elder care? If you live in California, there are several avenues available. The key to success in this area is knowing the type of arrangement that is right for your needs. This is a time in which learning what a Medicaid trust can do may come in handy.
How can a Medicaid trust be useful?
Elder law allows you to set up a trust to cover all of your elder care and nursing home costs. You will want to do so in a way that allows you to avoid becoming a financial burden to your relatives.
You can employ a Medicaid trust to help you protect your assets from liquidation in several areas. Chief among them is the threat you face to your finances from an extended stay in a nursing home. A Medicaid trust can be very useful in affording your trustees a significant amount of cash to cover all of your costs.
How does a Medicaid trust strategy work?
A Medicaid trust is one of the most commonly used strategies for long-term asset protection. You should keep in mind that once established, the trust will be irrevocable. There is a five-year window during which you can continue to contribute to this trust. But once you apply for long-term public benefits, this window will be closed.
There are a number of factors that must be considered before you sign off on this arrangement. You need to have a very clear idea of whom to name as a trustee. This can help prevent your children or other heirs from wrangling over the details of the trust.
