The use of irrevocable asset preservation trusts in Medicaid planning has many opportunities to create great benefits beyond simply transferring assets. Many important benefits that can result from gifting in trust are forfeited by outright gifting. These benefits are what give value to using irrevocable trusts in Medicaid planning.

Key benefits of gifting in trust can include (but not limited to):

  • Asset protection from future creditors of beneficiaries
  • Ability to design who will receive the net distributable income generated in the trust
  • Ability to make assets in the trust non-countable in regard to eligibility for public benefits
  • Ability to specify certain terms and incentives for the use of trust assets
  • Ability to decide how much beneficiaries will receive of remaining trust assets after the settlors die

If care is taken to include the desired provisions, an irrevocable trust can greatly enhance the value of the clients’ Medicaid planning beyond what can be accomplished through outright gifting. When creating a trust, it is important to have an experienced and knowledgeable elder law attorney who can help you every step of the way.

Elder Law of Omaha offers a FREE 30 minute initial consultation.

If you would like to schedule an appointment with one of our attorneys, please call (402)614-6400.