Creating a thorough estate plan is vital for ensuring your assets are distributed according to your wishes and that your final arrangements are honored. However, a well-rounded estate plan also needs to prepare for potential long-term care needs as you age, like Medicaid planning.
At Douglass & Runger, our skilled estate planning lawyers help you develop a comprehensive strategy that addresses how your assets will be managed and distributed and incorporates Medicaid planning to cover future care expenses.
By integrating Medicaid planning into your estate plan, you can secure the care you need without jeopardizing your financial stability or leaving a burden on your loved ones.
Planning for Long-Term Care and Qualified Income Trusts in Tennessee
Many American adults will need some type of long-term care during their lives, whether this care is provided at home, in a nursing home, or at an assisted living facility. With this in mind, and based on your medical history, it is advisable to appoint a durable power of attorney for healthcare so that you have someone you trust who can make medical-related decisions for you if you cannot make them for yourself.
A living will can also be helpful for providing additional details about the type of care you wish to receive and for setting up a plan for paying for it.
A living trust can be used, but there are some other options you might have that can allow you to pass more of your assets on to your loved ones. Among these options is a Qualified Income Trust (QIT), which is most often used to help those who are applying to Medicaid for long-term care coverage.
Medicaid Planning And Qualified Income Trusts
For many people, Medicaid is the primary option for paying for long-term care, as other government programs, such as Medicare and Social Security, do not cover long-term care expenses. Medicaid, however, has very strict income limits, and exceeding those limits will disqualify the applicant from receiving any benefits. This is where a Qualified Income Trust (QIT) – also known as a Miller Trust – can be helpful.
If your income is projected to exceed the Medicaid qualification limits, a qualified estate planning lawyer from our firm can help you structure a QIT to transfer any income over the Medicaid monthly limit. It is important to get started on creating your QIT several years before you think you might need it because Medicaid uses look-back periods to determine an applicant’s income eligibility. It is important to structure a Qualified Income Trust properly because any mistakes could affect your Medicaid eligibility, which could leave you responsible for the costs of your long-term care.
For the same reason, your QIT must also be managed properly once established. The trustee you choose to manage the trust must be trustworthy and capable, and our team can help you select the right person or entity.
Work With a Memphis Medicaid Planning Attorney
Before making any decisions about your possible long-term care needs, it is best to consult with a skilled estate planning lawyer about your unique situation. Your attorney can help you determine the right planning solutions for your specific needs, as well as assist with the creation of all necessary instruments.
