Most Medicaid applicants need to do some advanceplanning to qualify for these benefits due to the strict income requirements. Applyingfor Medicaid to pay for long-term nursing home care can be a confusing process.One of the planning tools that aids in qualifying is known as an Income CapTrust.
Applicants are denied Medicaid long-term carebenefits if their income exceeds a certain amount (currently $2022/month). Thisrule applies even if your health care costs exceed your income. An experiencedelder law attorney can assist you in creating an Income Cap Trust and settingup a bank account in the name of the trust. Each month, all pension and SocialSecurity income is deposited into the trust’s bank account.
A designated trustee, usually a spouse or adultchild, must spend the money in the account in a manner approved by Medicaid.This strategy reduces the income attributed to the individual and thereforehelps with Medicaid qualification.
The elder law attorney then prepares a spending plan of the monthly income in accordance with the Medicaid rules and submits the plan for approval. The goal is to design a spending plan that provides the maximum benefit to the beneficiary as well as the spouse. Having your Income Cap Trust established at the right time can prevent long delays in Medicaid eligibility. To get started, contact Stouffer Legal at 443-470-3599 in the Greater Baltimore area.
