Michigan Irrevocable Trust for Asset Preservation
When exploring options for protecting assets in order to qualify for Medicaid benefits, it is essential that you consult with an experienced and knowledgeable lawyer. We at Willis Law have extensive knowledge of how to utilize trusts to your benefit. Our attorneys meet with clients and assess their specific situations, moving forward with establishing the types of trusts or other planning strategies that best suit their current and future needs.
Our law firm is dedicated to a Christian model of service with a mission to protect clients as they make the best decisions for their family and future. Let us guide you with dignity and discretion.
Call 888-635-3824 or contact us by email for a consultation with a Grand Rapids Medicaid planning lawyer.
Since the assets in a revocable trust are considered by Medicaid as countable in determining eligibility, they are of no use in Medicaid planning. However, irrevocable trusts are many times of high value for Medicaid planning purposes. These types of trusts may not be changed after creation.
The assets of irrevocable trusts are sometimes paid to your spouse, using what is called a Medicaid Trust or Medicaid Annuity Trust, and then other times a Spousal Annuity Trust, and then paid to your heirs at your death. In other cases, irrevocable trusts are established for the benefit of the Medicaid applicant using his or her own assets, or are established for the benefit of a child or another relative who is a Medicaid recipient. In the context of a Medicaid Trust for an applicant's spouse, eligibility can be maintained immediately upon transferring all countable assets into such a trust.
When a private trust is established using the assets of the Medicaid applicant, the trust must maintain a Medicaid payback provision. This is not the case when a trust is established for the benefit of someone other than the applicant. Any of these variety of trusts, when properly employed, are considered exempt assets for Medicaid planning purposes, and no divestment penalty applies for establishing such a trust.
Created under a will, testamentary trusts are a "safe harbor" according to Medicaid rules, as they are created by a deceased spouse for the benefit of a surviving spouse. The assets of these types of trusts are treated as available to the Medicaid applicant only to the extent that the trustee has an obligation to pay the applicant's support. The funds in a testamentary trust can be used to help pay for services that are not covered by Medicaid.
Supplemental Needs Trusts
Medicaid has certain rules that govern the transfer of assets for the benefit of disabled individuals under 65. If structured properly, the funds will not be considered when determining Medicaid eligibility.
It is important to note that after the beneficiary of the supplemental needs trust dies, the state must be reimbursed from the trust for any Medicaid expenses that were spent on behalf of the individual.
Contact Our Kalamazoo, Michigan, Medicaid Planning Attorneys
For a free consultation, please call our Grand Rapids, Michigan, lawyers toll free at 888-635-3824 or contact us by email to submit a question about your case.