Planning for the future goes beyond writing a will; it includes protecting your assets, especially your family home. Understanding estate planning options ensures that your home stays safe from Medicaid estate recovery.
Understanding Medicaid estate recovery
Medicaid estate recovery allows the state to take money from your estate after you pass away to cover costs like long-term care. Without proper planning, your family could risk losing their home to cover these costs. Knowing about this risk is the first step in protecting your home.
Using an irrevocable trust
Placing your home in an irrevocable trust is an effective way to shield it from Medicaid estate recovery. This strategy removes the home from your estate, preventing Medicaid from claiming it after you pass away. Set up the trust well before applying for Medicaid because Medicaid will review any asset transfers made within the past five years. If Medicaid finds transfers within this period, they could affect your eligibility for benefits.
Transferring ownership
Transferring ownership to a trusted family member while retaining a life estate is another way to protect your home. This arrangement lets you live in your home for the rest of your life. After you pass away, the home automatically transfers to the designated family member, keeping it out of your estate and beyond Medicaid’s reach.
Securing your family’s
Thoughtful estate planning can safeguard your family home, ensuring it remains a valuable asset for your loved ones. The best approach depends on your specific circumstances and goals, allowing you to preserve your home for future generations.
