Trusts aren’t only estate planning instruments for those with millions of dollars in property. They are also valuable for professionals planning ahead for their retirements throughout New Jersey.
Many professionals in the Herdon area won’t have enough in savings should they need to fully cover nursing home costs in the later years of their lives. Medicare will not cover those expenses, making Medicaid the only insurance that will likely pay for the care many older adults require.
Adding a trust to your estate plan long before you might need Medicaid benefits could help you later in life when you do need them.
A trust can help you qualify for Medicaid
It is not just your income level but also your assets that determine your eligibility for Medicaid. The more property you have in your own name, the less likely it is that you will get benefits when you apply.
You may be subject to a significant penalty because of your personal assets or transfers made in the years immediately before you applied. When property is not in your name but in a trust, it will be a much smoother process to apply for Medicaid benefits.
A trust protects you from recovery efforts
After your death, Medicaid will attempt to recover the benefits paid on your behalf from your estate. They could take even the home that you live in, leaving the people you love with next to nothing from your estate. Trusts can be tools for those who need to protect certain assets from estate recovery efforts by Medicaid and other creditors.
Learning more about the basic estate planning tools available, like trusts, can help you evaluate whether they would be useful for you.