Vea a Vincent J. Russo como corresponsal jurídico en el programa CFN Live de Catholic Faith Network.

Vincent appeared on CFN Live on Febrero 23rd to discuss
“Protecting Your Residence with a Medicaid Asset Protection Trust?”

Colleen: Today, we are introducing a four-part series on Trusts and Medicaid with Vincent J. Russo “In the Legal Know”.

 

Vincent:

Colleen. I am excited to bring this four-part series to our viewers at CFN.

Trusts can be a powerful vehicle in maximizing government benefits, in particular Medicaid.  In this four-part series, we will take a look at various Trusts that can protect assets while accessing Medicaid for seniors and people with disabilities.

Today I will address how a particular type of Trust – the Medicaid Asset Protection Trust, can allow seniors to qualify for Medicaid long-term care at home or in a nursing while protecting their home and other assets.

This is very important because Medicare does not cover long-term care services which can be very expensive.  Without Medicaid, a senior will have to spend down their assets, losing their ability to stay at home and lose all of one’s assets.

 

Colleen:

Vincent, let’s start with: How does owning a home impact a senior’s eligibility for Medicaid long-term care?

 

 Vincent:

The basic rule is that your home is exempt if it is worth less than $955,000.

For example, if you apply for Medicaid home care, your home will not be counted against you in regard to the asset test for Medicaid eligibility (which is $16,800).

The same is trust for nursing home care as long as you have an intent to return home.

So, doing nothing seem ok BUT there is a catch.

As a general rule, the home is not exempt from a Medicaid estate claim when you pass away.  Medicaid will seek reimbursement against your estate (including your home) for the services provided by Medicaid.

If your home is transferred to a Medicaid Asset Protection Trust, then there is no Medicaid estate recovery against your home.

The home is there for you to live in.  If circumstances change, you can sell the home, buy another home or invest the sales proceeds in the Trust.

 

In summary, the Medicaid Asset Protection Trust which funded with your residence (can also be funded with other assets) can allow you to be:

1. Eligible for Medicaid home care,
2. Eligible for Medicaid nursing home care after 5 years from when the trust is transferred to the Trust (as a general rule),
3. While avoiding a Medicaid estate recovery when you pass away

 

Colleen: Does the senior have all the rights of ownership when the residence is placed in the trust?

 

Vincent:

As a practical matter, yes but legally the residence is owned by the Trust.

 

The senior has the exclusive right to live in the home, qualify for senior’s real estate exemptions (such as Star), as well as being treated the owner for tax purposes.

 

An added bonus is that the residence avoids probate on the individual’s demise.

 

Colleen: Are there other options available to seniors?

Vincent:

Absolutely, when transferring a residence, there are a number of exceptions to the Medicaid transfer penalty rule which should be explored as part of any long-term care plan.

Every situation must be analyzed and a plan created to meet the needs of the senior.  One size does not fit all.

The Medicaid rules are very complex and confusing.  As my law firm, we have a free Medicaid planning guide that can be downloaded on vjrussolaw.com.

Today, I presented the general rules of how it works in New York and the rules can also vary State by State.

 

Colleen: Vincent, can you give us a glimpse of what will you be covering with us on Marzo 1^st?     

Vincent:

We will take a look at Pooled Trusts which allow seniors to protect their income while receiving Medicaid home care services.

 

Si desea más información sobre estos temas y otros, puede descargar gratuitamente nuestras Guías de planificación desde el sitio web de nuestro bufete, vjrussolaw.com.

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Puede encontrar a Vincent en episodios anteriores de CFN Live haciendo clic aquí.
Los temas incluyen:

• Cambios en el programa de atención domiciliaria de Medicaid del Estado de Nueva York
• Conceptos básicos de planificación patrimonial - Parte 1: ¿Por qué necesito un plan de sucesión?
• Conceptos básicos de planificación patrimonial - Parte 2: ¿Qué incluye un plan patrimonial?
• Conceptos básicos de planificación patrimonial - Parte 3: ¿Cuándo y por qué debo actualizar mi plan patrimonial?
• Planificación patrimonial para niños con necesidades especiales - Parte 1: ¿Cómo cuido y protejo a mi hijo?
• Planificación patrimonial para niños con necesidades especiales - Parte 2: ¿Qué prestaciones públicas existen?
• Planificación patrimonial para niños con necesidades especiales - Parte 3: ¿Qué medidas debo tomar para mi hijo adulto con necesidades especiales?
• Planificación de la asistencia a largo plazo - Parte 1: "¿Cómo pago la asistencia a largo plazo?"
• Planificación de la asistencia a largo plazo Parte 2: "¿Cómo puede ayudarme la asistencia domiciliaria de Medicaid?"
• Planificación de la asistencia a largo plazo - Parte 3: "Cómo cumplir los requisitos para Medicaid"
• ¿Qué es un poder notarial?
• Actualizaciones jurídicas importantes

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Esperamos que sintonice CFN Live. Es un programa dinámico con noticias de actualidad y colaboradores fascinantes que tienen historias inspiradoras que contar. El nuevo programa CFN Live se emite de lunes a viernes. a las 9 de la mañana y a las 7 de la tarde. Podrá ver el programa en cualquier momento, según le convenga, en el canal de YouTube de CFN.

Puede obtener más información sobre la Red de Fe Católica y CFN Live visitando https://www.catholicfaithnetwork.org/cfn-live.

Socio Director de Russo Law Group, Vincent J. Russoes uno de los principales colaboradores del nuevo programa CFN Live de Catholic Faith Network. Vincent es el corresponsal jurídico del programa. En su segmento, titulado "In the Legal Know", Vincent le mantendrá al tanto de las últimas novedades legales, incluyendo la ley de ancianos, necesidades especiales y planificación patrimonial - todo para ayudarle a tomar decisiones de planificación informadas para protegerse a sí mismo, a sus seres queridos y a sus activos.