What is a Medicaid trust?

A Medicaid trust is a type of legal document used in Texas under Elder Law. It is used to protect assets and help individuals become eligible for Medicaid. Medicaid is a government-sponsored health care program that provides assistance to individuals with limited income and resources. A Medicaid trust allows individuals to transfer their assets to a trustee. The trustee then holds the assets for the benefit of the individual’s dependents or heirs. The assets in the trust are not counted as part of the individual’s estate, making them ineligible for Medicaid. By transferring their assets into a trust, individuals can become eligible for assistance while still preserving some of their estate. The individual’s assets in the trust are managed by the trustee and can be used to pay for care and other expenses. When the individual passes away, the remaining assets in the trust will go to the designated beneficiary. A Medicaid trust can be a great tool for individuals in Texas who want to become eligible for Medicaid while still preserving their estate for their dependents or heirs.

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