What is a Medicaid trust?

A Medicaid trust is a legal tool used to protect assets from long-term care costs in Delaware. This trust is established when an individual transfers their assets to the trust and appoints a trustee to manage the assets. The assets are not considered part of the individual’s estate, which means they are not subject to Medicaid eligibility requirements. One of the advantages of a Medicaid trust is that it is designed to allow the trust to be more accessible than traditional transfer-on-death arrangements. In a traditional arrangement, the assets held in a trust are generally inaccessible to the beneficiary until they die. With a Medicaid trust, the assets can be used to supplement the beneficiary’s income or used for other expenses while still preserving them from Medicaid eligibility rules. A Medicaid trust can also be beneficial for families facing the costs of long-term care. By transferring assets into a Medicaid trust, the value of the assets is removed from the individual’s estate. This means the individual’s estate will appear smaller and they may qualify for long-term care assistance from Medicaid. In Delaware, there are several rules and regulations surrounding Medicaid trusts. It’s important to contact an Elder Law attorney to make sure that all requirements are fulfilled and that the trust is properly designed and managed.

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What is a Medicaid trust?

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