Anybody over the age of 65 would require medical assistance of some sort or the other. Going by the present trend, the Alzheimer’s disease is the most common affliction of people over 65 years of age. The probability of contracting the disease increases in rapid proportion over the age of 65. The medical expenses for the treatment of such ailments are tremendous. As of today, it could be around $ 90000 per annum. This would enable you to make your own calculations as to the amount you might incur. If you have the requisite savings or the financial strength to bear the expenses, you are welcome to do so. However, the normal resident would not be in a position to bear the costs. This is where Medicaid can come to your assistance.
Medicaid, a joint federal-state health insurance program for low-income children, seniors, would be a great option for you. There is no such concept such as a free lunch today. The Government has a right to recover the cost of the Medicaid expenses. They do so by way of a clawback provision in the law that enables them to recover the expenses by way of seizure of the assets of the elderly after they die. This is a dangerous scenario and hurts the beneficiaries.
Investing in an Irrevocable Income Only Trust (IIOT) would help you secure your assets. This requires medicaid planning. Transferring your assets to this trust about five years prior to your long-term care would help you solve the problem.
Do no confuse these with Revocable Living Trusts that will not help with recovery agencies, investing in a Medicaid Asset Protection Trust is the only viable option. By doing so, you can retain the possession of your asset and save the same from seizure. You can live in your home without any fear of eviction. Seniors can transfer the assets in the name of an irrevocable trust for asset protection in your child’s name as well. This would enable you to enjoy the taxation benefits as well. You could transfer the property in your child’s name when you are alive and retain control over the asset as well. Consult an eminent elder lawyer at Cloud Peak law Group before doing so.
Cloud Peak Law Group
203 S. Main St.3000
Sheridan , Wyoming
82801 , USA
Phone : 307-674-1604