A “Medicaid Trust” is a trust that will protect assets held in the trust from being counted by Medicaid. Medicaid will not pay for health care if the applicant has more than $2,000 in assets. If a Medicaid trust is established, the assets in the trust cannot be counted toward this $2,000 asset limit.
When to Establish a Medicaid Trust in Ohio
Timing can be important when it comes to establishing a Medicaid trust. Often, the earlier a Medicaid trust is established, the better. If the trust is established and funded within five years of applying for Medicaid, Medicaid will apply a penalty. If the Medicaid application is filed five years after the funding of a Medicaid trust, the transfer of assets to the trust does not have to be disclosed to Medicaid and will not affect the Medicaid application. Medicaid trusts can be established and funded even if a person is in the nursing home already!
How Much to Put into a Medicaid Trust
Determining how much should be put into a Medicaid trust can be complicated because everyone’s situation is unique and requires a customized plan. It is often best to work with an experienced law firm, like Solomon, Steiner & Peck, Ltd., to develop a personalized plan for your assets and to establish a trust. Our attorneys are skilled at determining the amount of money that can be preserved and can guide you through the process of establishing a trust.
To schedule a consultation, please contact us at one of our conveniently located offices in northeast Ohio today.