One of the most common questions presented to estate planning attorneys has to do with approaching Medicaid planning in the right way. Medicaid planning requires advanced knowledge and plenty of experience in this field because the rules surrounding Medicaid are subject to change and are state specific.
One question that you may have in relation to your elderly parents is about Medicaid benefits. If your elderly loved one currently lives in a nursing home and you are worried about the surviving spouse who may pass away first, this can raise questions about whether or not the benefits will stop. People should always have their estate planning documents created in the past thoroughly reviewed when initiating the Medicaid planning process or a Medicaid application.
There are specific rules about how many assets a person is allowed to have to maintain eligibility for Medicaid. If your loved one, who is currently in a nursing home for which the bills are being paid through Medicaid, receives a sudden inheritance that puts him or her over the cap, that person could lose benefits at least temporarily until the inheritance was used up on nursing home expenses.
A testamentary special needs trust could be an option depending on the circumstances of your loved ones. The first spouse’s estate or a portion of it would flow into the trust, following the payment of all debts. Then an adult child or someone else can be named as the trustee and the trustee is eligible to use the funds to provide for services that might not be covered by Medicaid, such as second medical opinions, transportation, private care giving services, special therapies, and more.
The money will then be able to pass onto other beneficiaries rather than going to Medicaid when that parent passes away. However, this requires complex planning techniques and insight from an experienced attorney. Schedule a consultation with an estate planning lawyer today.