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How can I protect my assets from Medicaid?
In Missouri, there are a variety of options when it comes to planning for long-term care. This discussion will focus on the Irrevocable Medicaid Asset Protection Trust.
One significant advantage to having an Irrevocable Medicaid Asset Protection Trust is that assets transferred into the trust may not count towards Medicaid eligibility. However, this advantage must be weighed against the prospect of losing control of one’s assets. Assets in an Irrevocable Trust are outside the Grantor’s control. Unlike a Revocable Living Trust, one cannot serve as the Trustee of their own Irrevocable Medicaid Asset Protection Trust. Essentially, to protect assets you must forfeit control over them.
Additionally, any asset transfers to an Irrevocable Medicaid Asset Protection Trust must occur at least five years prior to applying for long-term care. Otherwise, the assets may face penalties or be deemed non-exempt.
Each state has their own laws for determining Medicaid eligibility. It is important to speak to a qualified attorney in your state when considering long-term care planning.