It is necessary to understand the different planning strategies which allow seniors to obtain benefits while protecting their assets for their beneficiaries. While long-term care insurance is the best option, it is not always an option. That is why most Medicaid Trust Lawyers in New York use another technique; an irrevocable Medicaid trust which can have various benefits both during life and after death.
Benefits throughout life
Planning a Medicaid trust in NY involved transferring assets, including real estate, into an Irrevocable Medicaid Trust.
There are certain benefits to this kind of trust including:
- The right to remain in the home as long as you and your spouse are alive.
- The right to make the trust “income only” and collect any rent the property generates.
- The ability to keep your existing STAR and Enhanced STAR property tax relief as long as you reside in the home.
- The right to use the $250,000 (if single) or $500,000 (if married) capital gains tax exclusion if the home is sold during your life.
- When homes are placed in a trust your beneficiary can be protected from creditors.
- Changes can also be made during your lifetime
Benefits After Death
After both spouses have passed away the trust will distribute assets according to their predetermined wishes. By writing a will you can reference the trust the right is retained during life to change the beneficiaries. So this means the right of control is not forfeited. This means a home can receive a step-up tax basis, saving the heirs from paying capital gains when the home is sold.
Probate can also be avoided which saves both the time and money of the beneficiaries. One of the reasons you might want to avoid probate is the Medicaid estate recovery which means the Medicaid program can claim back what was paid after death.
Working with a Medicard lawyer is the best way to ensure you, your assets and your beneficiaries are protected.
Get a free consultation with the local estate planning experts at:
Roman Aminov Esq. Estate, Probate & Elder Law of Queens 147-17 Union Tpke, Queens, NY 11367 (347) 766-2685 https://www.aminovlaw.com/