Preserve Your Assets with the Florida Medicaid Laws
When you or someone you love need to be transitioned to an assisted living facility, one of the first things that needs to be done is apply to Medicaid. Medicaid can provide financial assistance in paying the monthly fees. Medicaid looks back at the last five years of your financial transactions and your current financial situation. This is done to determine how much of your assets can be liquidated and used to pay for your long-term care needs. Before you apply for Medicaid, there are ways to protect those assets under the laws of the state of Florida.
The best way to preserve your assets during the Medicaid application or look-back periods is to move your assets to an asset protection trust. This is a legal mechanism that becomes its own entity. That entity takes over ownership of your assets while allowing you to keep all control. It is a legal way to preserve your assets and it is the one of the most common ways people protect their wealth from Medicaid in the state of Florida.
Setting It Up
Since you are setting up the trust, you become the Grantor. You can assign yourself and someone else as trustee. You determine the detailed manner in which the trustee must handle the assets of the trust. Additionally, you can even set it up so that your trust gives financial gifts to family members. You can also transfer the ownership of your real estate to your trust to protect it from Medicaid. But, you retain the right for full use of that real estate, and keep your homestead.
Details About An Asset Protection Trust
Once an irrevocable trust has been legally established, the rules and trustees can still be changed. A trust avoids Florida probate court after the trustor dies. The trust will continue to pay out on financial arrangements as long as it is funded. This means that not only can an asset protection trust protect your assets from Medicaid, but it can make sure that your assets are distributed to your beneficiaries after you have passed away.
The Mattar Firm can help you protect your assets before going into the Medicaid planning process. Give our experienced asset protection attorneys a call and we will make sure that you and your beneficiaries are allowed to utilize your estate as you see fit even after submitting your Medicaid application.