Individuals receiving Supplemental Security Income (SSI) are only eligible for Medicaid benefits if they keep their countable assets at or below $2,000.00. Medicaid benefits will be disrupted if a recipient of SSI receives an inheritance or a lawsuit settlement. However, Medicaid benefits can be protected by preparing a Special Needs Trust to hold the settlement payment. Given the complexity and longevity of establishing and administering a Special Needs Trust, it is important to seek the advice of one of our experienced attorneys. –see Special Needs Trusts.
With an early diagnosis of dementia, Parkinson’s Disease and Multiple Sclerosis, family members may have the ability to foresee the need for nursing home care years in advance. What some refer to as a “Medicaid trust” is a way to preserve assets from being spent on the cost of nursing care five or more years down the road. This type of irrevocable trust may cause significant tax consequences and should only be considered under the advice of our experienced Elder Law attorneys.