Most Medicaid applicants need to do some advance planning to qualify for these benefits due to the strict income requirements. Applying for 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 Cap Trust.
Applicants are denied Medicaid long-term care benefits if their income exceeds a certain amount (currently $2022/month). This rule applies even if your health care costs exceed your income. An experienced elder law attorney can assist you in creating an Income Cap Trust and setting up a bank account in the name of the trust. Each month, all pension and Social Security income is deposited into the trust’s bank account.
A designated trustee, usually a spouse or adult child, must spend the money in the account in a manner approved by Medicaid. This strategy reduces the income attributed to the individual and therefore helps 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.