As you approach your elder years, it becomes imperative to consider how you will continue to pay for the services you need despite no longer having a steady source of income from employment. A major cost that many people will have as they grow older is the bills associated with nursing home care. This care can cost several thousand dollars a month.
Thankfully, the federal Medicaid program can provide financial assistance if you cannot pay yourself. Unfortunately, state law limits the monthly income you can have and be considered eligible for these benefits. One way to lower your monthly income below this level while still bringing in funds is to set up a qualified income trust. A Woodstock Qualified Income Trusts lawyer can provide more information about this process and take the steps needed to protect your assets and your health. To learn more, get in touch with a Medicaid attorney at Nelson Elder Care Law.
The federal government recognizes that many people need nursing home care. They also know that this care can be prohibitively expensive. As a result, anyone needing nursing home care can apply for Medicaid benefits that can pay the nursing home directly.
At the same time, state law places an upper limit on your monthly income that determines your eligibility for this program. As of 2022, this limit is $3,435 a month. Sadly, many people earn more than this but are still unable to afford nursing home care while protecting their other assets.
One option is to place excess income into a Qualified Income Trust. These trusts take this extra income and name the nursing home as the sole beneficiary. Because property that moves into a Trust is no longer an asset of a Trust maker, this could help place you below the income threshold for Medicaid assistance. A Woodstock Qualified Income Trusts attorney can explain the Medicaid income threshold and how creating a trust could improve your eligibility for benefits.
All Trusts in Woodstock, including Qualified Income Trusts, must follow a similar pattern for creation and maintenance, a process a skilled lawyer can assist you with. Creating a Trust can be fairly simple. The maker simply states that they want a trustee to take control of an asset and distribute it to a beneficiary at a set point in the future. As long as the maker has the intent to do so, this simple act creates a Trust.
When looking to create a Trust, it is vitally important to select a trustee willing and able to perform this task. The Official Code of Georgia Annotated § 53-12-200 says that any adult can be a trustee, provided they understand their obligations under the law. These obligations include protecting trust assets while still under their control and acting to distribute assets at the appropriate time.
As applied to Qualified Income Trusts, the money that moves into a Trust can only go towards paying for nursing home care. While the trustee may take out the necessary amounts needed for trust maintenance, failure to follow this basic rule may jeopardize your Medicaid eligibility. Talking with a lawyer knowledgeable about Qualified Income Trusts in Woodstock can help you better understand trusts and how they interact with Medicaid.
Affording nursing home care in the Woodstock area is rarely easy. Many people look to Medicaid for help with these hefty bills. However, state law places a strict limit on the amount of income you can receive and still qualify for help. This often leaves a gap that forces people to sell valuable and cherished assets to pay for their care.
One way to avoid this dilemma is to create a Qualified Income Trust. This takes your excess monthly income and orders a trustee to use it to pay for nursing home care. This also lowers your monthly income to levels that improve your eligibility for Medicaid benefits. Speak with a Woodstock Qualified Income Trusts lawyer today to learn more.
“On the threshold of retirement, we finally decided to quit thinking we could self-prepare the requisite documents. We had previously had only a very simple will. We needed the necessary legal (including updated will) & health care docs but didn’t want to deal with the time & complication of legalese. Cindy made the process relatively painless. She took the time to explain and answer questions without trying to upsell services. We were done in 2 meetings plus the reading of emailed drafts. In addition to preparing the documents, Nelson Eldercare will be there when our adult children need advice on executing the plans we’ve put in place.So glad it’s behind us and would recommend Cindy and her helpful staff.”
Cindy and her company treat their clients like family. Nelson’s offers clear, direct, and honest guidance in planning for your families security and future. No one wants to actively sit down and make these decisions, but Nelson’s makes this process seamless. I was so impressed with their willingness to answer all questions big or small. So glad I made the decision have them help my mom and dad and now me. You can’t go wrong with Nelson’s Elder Care Law.
The very best elder law attorney and staff anyone could ever ask for! I have referred a number of clients to Cindy and she never disappoints. She is kind, caring, and extremely thorough in making sure everything is completed as it should be. I highly recommend Cindy for anyone needing lawyer services; she truly goes above and beyond for every client she helps and has had a huge impact in so many peoples’ lives. Thank you, Cindy and staff, for everything that you do- I’m so glad to know you!
I heard Cindy’s presentation at a Senior Luncheon at my church, and was very impressed. She helped my daughter and me understand many aspects of elder law. Josh has also been very helpful in my planning to enter an independent living situation . I have told many friends about them.
Cindy and the Nelson Elder Care Law team are trustworthy and helpful. They are the experts in elder care law. At Leaf Cremation, we entrust our families to the care of the Nelson team when their services are needed.