client’s needs. Using a properly drafted irrevocable trust can minimise some of the disadvantages of making gifts. What types of assets are typically considered countable or non-countable when determining Medicaid eligibility? As noted above, a home up to the equity limit is noncountable and can be transferred to a spouse living in the community. A home is a primary residence and does not include a seasonal home such as a vacation home or seasonal residence in another state. Care must be taken in the planning process to avoid the probate estate lien discussed above. Other exemptions include personal belongings, such as clothing, household furnishings, an automobile, a prepaid funeral contract and a burial plot. When it comes to protecting assets while applying for Medicaid, what strategies are most useful in 2023? Several techniques to help a family properly plan are available in 2023. More options exist for married couples than for unmarried persons. First, a family should make sure they are taking advantage of the exemptions above. After that, the planning options to evaluate with a client include using an actuarially sound annuity or promissory note. This plan converts countable resources to income and subjects the income to the income tests described above, which can be less harsh than the asset tests, and leave a spouse in the community in a much better financial position as he or she is entitled to retain all of his or her own income. Also, planning before the onset of a debilitating condition through the use of a properly drafted irrevocable trust should be considered. For a single person who has not planned in advance, there is plan that can protect a portion of the assets. The calculations and analysis for this plan can be complex and the client should work with an experienced elder law attorney. How can trusts and gifting assets assist with this? If a client has the time horizon to get by the five-year look-back period described above and he or she has done a careful analysis of his or her ability to sustain themselves in the community without the gifted assets, using an irrevocable trust should be considered. The advantages include being able to select a third party to manage the assets for the beneficiaries of the trust in case the beneficiaries are not yet financially responsible. MY LEGAL LIFE 31 Transferring assets for purposes of protecting them from long-term care costs is a delicate proposition. There are tax disadvantages associated with gifting assets away, and in some cases the gift recipient may squander the assets in a short period of time.
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