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Let’s talk about a Medicaid Asset Protection Trust in Georgia.
In this article, you’ll learn about:
Let’s dig in.
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A Medicaid Trust is a legal tool designed to protect a person’s assets from being counted for Medicaid eligibility.
It is typically an irrevocable trust, meaning it cannot be easily changed or revoked.
The trust’s creator, called the grantor, transfers assets into the trust.
A trustee manages these assets for the benefit of the beneficiaries.
The main goal of a Medicaid Trust is to help an individual qualify for Medicaid’s long-term care coverage.
While also preserving assets for their family or other beneficiaries.
To structure a Medicaid Asset Protection Trust:
When setting up a Medicaid Asset Protection Trust in Georgia, consider the following:
Here are some pros and cons of Medicaid asset protection trusts in Georgia.
A Medicaid Trust in Georgia has several disadvantages:
State-Specific Rules: Georgia laws can impact trust setup and effectiveness.
A Medicaid Trust in Georgia offers several advantages:
Georgia follows federal Medicaid guidelines for asset transfers, with some state-specific nuances.
To avoid penalties or disqualification, adhere to the following rules:
In Georgia, an income cap is imposed for Medicaid eligibility.
This limits the amount of income an individual can receive to qualify for Medicaid benefits.
Here is a table with Georgia’s Medicaid income limits.
“Monthly income” includes:
These cannot exceed Georgia’s Medicaid income limits.
| Family Size | Maximum Monthly Income | Maximum Yearly Income |
|---|---|---|
| 1 | $2,564 | $30,768 |
| 2 | $3,468 | 41,616 |
| 3 | $4,372 | 52,464 |
| 4 | $5,275 | $63,300 |
| 5 | $6,179 | $74,148 |
| 6 | $7,083 | $84,996 |
| 7 | $7,987 | $95,844 |
| 8 | $8,891 | $106,692 |
| 9 | $9,794 | $117,528 |
| 10 | $10,698 | $128,376 |
| 11 | $11,601 | $139,212 |
| 12 | $12,506 | $150,072 |
If the income cap is exceeded, the beneficiary may become ineligible for Medicaid benefits.
To avoid this, the trust should be structured in a way that:
Let’s say that you have income that exceeds Georgia’s Medicaid income limits.
A Qualified Income Trust (QIT) or Miller Trust can be used to manage the income that exceeds the cap.
This allows the beneficiary to maintain Medicaid eligibility.
Always consult a Georgia elder law attorney to ensure:
In Georgia, the home property exemption is a rule for Medicaid applicants.
They can exclude their primary residence as a countable asset for Medicaid eligibility.
This exemption prevents disqualification due to the home’s value.
To qualify for this exemption, applicants must:
When creating a Medicaid Asset Protection Trust, make sure the primary residence in the trust still qualifies for the exemption.
Proper trust structure and compliance with Georgia’s rules and regulations are necessary.
This ensures the home isn’t counted as an asset, which could affect Medicaid eligibility.
Fill out the form on this page to get our attorneys to set this up for you.
To avoid penalties or disqualification from Medicaid in Georgia, follow these specific rules regarding asset transfers:
The trust’s purpose is to improve the beneficiary’s life without risking their Medicaid eligibility.
It should complement, not substitute, Medicaid benefits that cover vital medical and long-term care costs.
To ensure this, do not give direct cash distributions to the beneficiary.
Such payments can raise their income or assets, possibly making them ineligible for Medicaid.
The trust should pay for additional expenses Medicaid doesn’t cover, like:
The trustee must directly pay for these supplemental needs.
And avoid cash transfers to the beneficiary.
This allows the beneficiary’s Medicaid eligibility to be preserved while their well-being is enhanced.
Read More: The Biggest Mistake Parents Make When Setting Up A Trust Fund
Let’s talk about the Medicaid irrevocable trust & 5-year lookback period.
Georgia’s 60-month look-back period pertains to asset transfers before applying for Medicaid.
This includes transfers to a Medicaid Asset Protection Trust in Georgia.
This period aims to prevent immediate qualification for Medicaid benefits through asset transfers.
You can place assets into the trust when created.
But transferring assets within the 60-month look-back period may lead to:
Here’s an example to illustrate penalties related to the 60-month look-back period in Georgia:
Imagine you transferred $50,000 worth of assets to a Medicaid Asset Protection Trust 30 months before applying for Medicaid.
The average monthly cost of nursing home care in Georgia is $6,000.
Since the asset transfer occurred within the 60-month look-back period, you may face a penalty period.
To calculate the penalty period, divide the total value of transferred assets ($50,000) by the average monthly cost of nursing home care ($6,000):
$50,000 ÷ $6,000 = 8.33
In this example, the penalty period would be approximately 8.33 months.
During these 8.33 months, you would be temporarily disqualified from receiving Medicaid benefits.
Once the penalty period has passed, you can regain Medicaid eligibility.
But only if you meet all other requirements.
You can apply for Medicaid after:
Alternatives to Medicaid Asset Protection Trust include:
Georgia Medicaid has a payback requirement when a beneficiary passes away.
This means that the state can recover some of the Medicaid benefits paid on behalf of the beneficiary from their estate.
However, there are some exemptions to the payback requirement.
The primary exemption is for a surviving spouse or minor child who is still living in the home.
The home is also exempt if a sibling who has an equity interest in the home resides there.
Additionally, other exemptions exist, such as for:
These exemptions may protect some assets from the payback requirement.
Here are questions our Medicaid Asset Protection Trust clients ask frequently.
Putting your home in an irrevocable trust can potentially protect it from Medicaid.
By transferring the home to the trust, it becomes a non-countable asset and may not affect Medicaid eligibility.
However, the trust must be structured properly.
And you should adhere to the 60-month look-back period to avoid penalties or disqualification.
It’s also essential to ensure the home still qualifies for your state’s home property exemption.
Read More: Does Putting Your Home In A Trust Protect It From Medicaid?
A properly structured Medicaid Asset Protection Trust can protect your assets from being counted for Medicaid eligibility.
By placing assets into an irrevocable trust, they:
However, you must follow the specific rules and regulations, such as:
This ensures the trust’s effectiveness in shielding assets from Medicaid considerations.
If you put your house in a trust, a nursing home may have difficulty taking it from you.
This is because the house is no longer considered your asset but belongs to the trust.
However, there are some exceptions to this rule, like:
In this case, the house may not be fully protected.
And a nursing home could take your house even if it’s in a trust.
When you go on Medicaid, there are strict asset limits that you must adhere to.
And these may vary depending on your specific situation.
However, some assets may be exempt from consideration when determining Medicaid eligibility.
The assets you can keep when you go on Medicaid may include:
An irrevocable trust can protect assets from nursing homes.
But it depends on how it’s structured and the timing of the transfer.
By placing assets into an irrevocable trust, they may:
Let’s say the transfer occurs within 60 months before applying for Medicaid.
It could result in a penalty period or temporary disqualification from Medicaid benefits.
Additionally, creating an irrevocable trust means you give up control and ownership of the assets.
You cannot change the terms of the trust or take the assets back.
If you need a Medicaid asset protection trust, fill out the form below.
We have the experience to make sure that:
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