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Asset Protection Trust

123 W. Chandler Heights Road #11656, Chandler, AZ 85248 - (480) 401-2660

Whenever long-term health care becomes necessary for an individual the costs may be covered by Medicaid, a joint federal and state program that is often the only recourse for many seniors. In such case, the government will first investigate whether that person has assets available to cover those health care costs in full or in part. Medicaid imposes very strict limits on the amount of available or "countable" assets a Medicaid recipient may retain - typically $2,000 to $3,000 depending upon the state in which you live.  Countable assets include cash, checking and savings account deposits (including jointly held assets), IRAs, Keogh plans, pension funds (with certain limitations), annuities, stocks and bonds, and the cash surrender value of life insurance policies, among others.


In order to protect those countable assets without first having to "spend them down," your Agins Law Firm
Chandler/Sun Lakes Medicaid planning attorneys can design an
Asset Protection Trust that will allow you to qualify for Medicaid while leaving an inheritance for your heirs. Because a revocable trust remains under the control of the person who establishes the trust - its "settlor," Medicaid deems those assets to belong to him or her, and they are considered to be countable assets.  With an irrevocable trust, however, after a five-year look-back period, the transferred assets are deemed not to be under the control of the trust settlor and he or she may therefore qualify for Medicaid while the trust's assets remain available for bequest to heirs.


Writing in Investopedia about the Top 5 Strategies to Pay for Elder Care,reporter Greg Daugherty stated that
according to a 2012 MetLife Survey, "the average nursing home costs more than $220 a day, or over $6,000 a month
and that in some metropolitan areas, those costs can exceed $15,000 a month.  The MetLife study found that a
month in an assisted living community - for those people who don't need the same level of care a nursing home
provides - ran $3,550 a month on average."
  It is not hard to imagine annual health care costs reaching or exceeding $75,000 to $100,000.  Therefore, people approaching senior status should be planning ahead to ensure that their
Asset Protection Trust is funded in full at least five years before they anticipate needing Medicaid.


An Asset Protection Trust is but one way to shield countable assets from Medicaid.  Make an appointment today with an Agins Law Firm Chandler/Sun Lakes elder law attorney to explore the feasibility of using a private annuity trust, promissory note, pooled trust or other device to achieve your long-term healthcare needs.


The recent advent of the Affordable Care Act has brought about significant changes in health care planning for seniors.  Whether those changes are good or bad remains to be seen, but it is undeniable that the cost of maintaining a loved one in
a long-term health care facility is staggering and will only continue to grow. This is true notwithstanding a recent report
by the Congressional Budget Office predicting that the growth in Medicare costs will slow in the near future. Medicare is intended only to cover the short-term care expenses for those over age 65, such as rehabilitation and recuperation.


Prudent Legal Counsel for Your Future

Asset Protection Trust