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Medicaid Asset Protection Trust Versus Gifting Your Assets
It is commonly accepted that gifting assets comes with a lot more flexibility than creating trust. The amount of legal work entailed is also less or negligible. However, did you know that gifting assets violates the regulations Medicaid sets?
- It may violate your eligibility for Medicaid as a penalty.
- As with MAPTS, asset gifting has to occur in advance. It should take place five years before availing of Medicaid long-term care.
According to our Medicaid Trust Brooklyn experts, another asset gifting concern is capital gains taxation. Our experts recommend forming a Medicaid Asset Protection Trust and securing your assets to avoid these capital gains taxes.
Medical Trust Brooklyn – Assets that Can be Included in the Asset Protection Trust?
Along with the property you reside in, you can place different types of assets into your Medicaid Asset Protection trust. You may continue to live in the house even after placing it in the trust. The primary advantage of placing your home in a MAPT is that it is possible to dispose of your home and use the proceeds in the trust to buy another one.
However, there is one exception to this regulation. Suppose you are residing in Michigan, then your home will be categorized as a countable asset. It effectively means that your home is non-exempted from taxation and will be included in the asset limit of Medicaid.
With our Medicaid Trust experts Brooklyn by your side, you should have no problems in availing the eligibility to form a MAPT. The other assets that are eligible for inclusion in the MAPT are:
- Any other real estate or property apart from the house you are residing in.
- Your savings and checking accounts.
- Bonds and stock holdings.
- Mutual Funds, CD, etc.
The transfer of retirement accounts (IRAs and 401ks) is generally not recommended for this purpose. This is because the transfer of such accounts to a MAPT and cashing of plans are subject to tax implications.
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Eligibility for Medicaid Trust Brooklyn
First and foremost, if you are applying for a MAPT, you should be a resident of NYC. If you are a permanent resident, citizen, a national, or an illegal alien who needs insurance assistance or healthcare, and your financial situation can be categorized as very low income or low income; then you may be eligible for Medicaid trust benefits.
In addition, it is also important for you to be one of the following:
- Pregnant
- Holding the responsibility of a minor
- Blind
- Aged 65 years or more.
- Suffering from a disability or any other family member has one.
For gaining eligibility, your annual household income (prior to taxes) has to be within limits set by Medicaid. Connect to our Medicaid Trust Brooklyn specialists and attorneys to understand how you can plan your estate so as to avoid any litigation or disputes in the future. We have the experience and expertise to recommend the best possible solutions for asset protection. Our expertise in providing guardianship control, will and probate management, etc., has earned us a high reputation in Brooklyn.
Why Us?
At Medicaid Trust Brooklyn, we serve to provide the best legal assistance for the financial rights of your family members. Our decades of experience in probate and will handling, estate planning, succession and probate management, asset protection, litigation, and disputes, make us the best resource for all estate-related issues.
Our diligent attorneys are well-equipped to handle:
- Intestacy laws are applicable to New York City.
- Mitigation processes of estate law.
- Probate and asset/ estate administration processes.
- Succession and guardianship.
- Estate litigation crises.
Top Estate Planning Company in Brooklyn
Ranking high on the list of the top litigation and estate planning firms in Brooklyn, we exult in the success of our clients. Our in-depth knowledge of various state laws has managed to yield the best results for all clients and companies. Through our dedicated endeavors, we have managed several successful cases of wills, probate, and guardianship.
Are you ready to leverage our decades of experience in Medicaid Trust and estate planning? Get set to discover how we have satisfied our clients by taking care of the smallest details or loopholes. Our wide presence across New York City in counties like Nassau, Brooklyn, Manhattan, and Queens is a matter of pride for our accomplishments.
Connect with our experienced estate planning lawyers and Medicaid Trust Brooklyn attorneys; they can provide the most relevant advice and consultation for your ongoing problems. Our expertise in building Medicaid Trust Brooklyn can take care of your legal needs and the applicable laws in their entirety. We await to hear from you and provide affordable services that guarantee the highest probability of positive outcomes.
New York Estate Planning
Medicaid Trust Brooklyn
At Medicaid Trust Brooklyn, we believe that every individual should invest time and resources in basic estate planning. It is important to ensure that your wishes are taken care of and followed after your passing. With estate planning, your family will be spared from unnecessary delays and expenses of inheritance, succession, and guardianship. The person you totally trust will be in charge of your will, probate, or any other documentation in case you are incapacitated in the future.
In general, the commonly used estate planning documents required by New York Citizens are:
- A well-documented will to leave your property, assets, and other belongings in the custody of an executor.
- A power of attorney for passing on the financial benefits to your beneficiaries. It is important to name someone who can protect and take care of your finances in case the situation arises.
- The documents directing home or nursing healthcare NYC through a living will for spelling out your last wishes.
- A healthcare proxy for naming an individual to ensure that your healthcare wishes are taken care of and honored.
Avoid Probate After Death
Many New York residents and those in Brooklyn would want to avoid an important estate planning issue: probate after death. Prior planning is very helpful for your family to avoid probate court proceedings after your passing away. This will help them get their due inheritance without asking for court approval to transfer your assets. In most cases, probate seems to be a waste of money that can be avoided by building a living trust or through other similar means.
We have a dedicated team of probate lawyers who can help your beneficiaries receive the assets and estate you leave behind. Even across your lifetime, our estate planning attorneys will protect your estate and ensure the best returns in the event of any sale of the property.
The Medicaid Trust Brooklyn lawyers associated with our firm are adept in handling your home and nursing care reimbursements without letting the State touch your assets. We can help you save through tax exemptions and ensure the best returns, always.
How to Reduce Estate Taxes After the Grantor Passes Away?
Our expertise in minimizing estate taxes, as levied by the State of New York, has earned us further credentials. Estate taxes are levied by New York City in case an individual dies after leaving behind a property that surpasses a certain amount. The threshold of the estate taxes is quite high. However, these taxes are lesser than the threshold established by the federal estate taxes.
Suppose you die leaving behind an estate, and federal estate taxes are not applicable to you. Even in that scenario, the property left behind by you may become eligible for estate taxes. In case you are worried about the estate taxes being levied or applied on your estate, the experienced lawyers in our firm can help you with proven methods of reducing your bills.
Connect With Medical Trust Brooklyn
If you are still looking for a reliable estate planning company to take care of your assets, then you are in the right place. Our estate planners, litigation and Medicaid Trust builders, will and testament makers, etc., are fully-equipped to take care of your needs.
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Frequently Asked Questions
A Medicaid Asset Protection Trust is an important planning strategy that can match the asset limit set by Medicaid. It comes in handy if you are applying for Medicaid but has excess assets. MAPT is also referred to as a Medicaid Planning Trust or Home Protection Trust.
- The trust secures your assets from being assessed for the purpose of eligibility.
- It helps applicants who are otherwise ineligible to receive Medicaid aid get the care required after attaining eligibility. This care can be provided in a nursing home or at home.
- The assets placed in the Medicaid Protection Trust are not considered to be under the ownership of the Medicaid applicant.
- MAPT assets are protected by relatives and children of the applicant. Therefore, it is a helpful situation for the applicants for Medicaid and their families.
According to experts in Medical Trust Brooklyn, different types of trusts can be created by applicants. However, all these trusts are not Medicaid compliant.
For example, the revocable trust that helps applicants qualify for a living trust or a family trust is different from the Medicaid Asset Protection Trust. A family trust is not helpful in asset protection or securing the money from Medicaid. This is because it is considered revocable, which means that it can be altered or canceled anytime. The money in the family trust can be used to secure the long-term care costs of the applicant. Given this, the assets present in a family trust have to be toned down or shown as ‘spent’ to match the asset limit of Medicaid.
By putting your assets in a Medicaid Trust Brooklyn, you can meet the asset limit specified by Medicaid without the need to spend the assets. Alongside, you will also be able to protect the assets of all beneficiaries enlisted by the trustee.
Overall, it means that your assets are safe and secure from Medicaid estate recovery. Suppose, as a Medicaid recipient, you pass away. The estate in which you lived and availed of Medicaid benefits will be used for the collection of the reimbursement paid for your long-term care. Your estate will be used for this purpose. On the contrary, if your assets and other property are placed in the MAPT, they will not be collectible by the State. These are the biggest benefits of building a Medicaid Trust Brooklyn.
