• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Mendel Law Firm, L.P.

Attorneys & Counselors

Call Now: (281) 759-3213

  • FB
  • TW
  • IN
  • RSS
LP Payment button
  • Home
  • Our Firm
    • About Our Firm
    • About The American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • Mission Statement
    • Multimedia
    • Published Books
    • The Academy Fellow Designation
  • Services
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
      • Are You A Caregiver
      • Coping With Alzheimer’s
      • Guardianship & Conservatorship
      • Hospice Care
      • Emergency Medicaid & Nursing Home Planning
      • Medicaid Planning
      • Veteran’s Benefits
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Seminars
  • Testimonials
    • Client Testimonials
    • Representative Clients
    • Review Us
  • Resources
    • Areas We Serve
      • Baytown
      • Conroe
      • Galveston
      • Houston
      • Pasadena
      • Woodlands
      • West University Place
    • Elder Law Reports
    • Elder Law Resources
      • Galveston Elder Law
      • Houston Elder Law
      • Sugar Land Elder Law
      • West University Place Elder Law
      • Woodlands Elder Law
    • Estate Planning Resources
      • Estate Planning Checkup
      • Estate and Gift Tax Figures
      • Estate Planning Definitions
      • Estate Planning Reports
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top Estate Planning Techniques
      • Top 10 Estate and Legacy Planning Techniques
    • Frequently Asked Questions
      • Asset Protection Planning
      • Avoidance Tax Planning
      • Avoiding Probate
      • Business Succession Planning
      • Charitable Gifting
      • Elder Law
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • IRA and Retirement Planning
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Living Trusts
      • Medicaid
      • Medicaid Planning
      • Nursing Home Planning
      • Pet Planning
      • Power of Attorney
      • Probate
      • Trust Administration
      • Trust Administration & Probate
      • Trusts
      • Veterans Benefits
      • Wills
    • LGBTQ Resources
    • Probate Resources
      • Houston Probate
      • Sugarland Probate
      • Woodlands Probate
      • West University Place Probate
    • Probate & Trust Administration Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
    • Special Needs Resources
    • Newsletters
  • Contact Us
  • BLOG
Home » BLOG » How Much Can a Medicaid Trust Protect?

How Much Can a Medicaid Trust Protect?

January 18, 2017 by Stephen A. Mendel, Estate Planning Attorney

As the costs associated with long-term care in the United States continue to increase, the need to include Medicaid planning in your overall estate plan increases as well. Although every estate plan is as unique as the individual creating the plan, one common addition to an estate plan that includes Medicaid planning is a Medicaid trust. If you are considering the addition of a Medicaid trust to your estate plan you may have questions, such as “ Why do I need a Medicaid trust?” and “ How much can a Medicaid trust protect? ”

A Medicaid trust may be necessary to protect your assets in anticipation of the need to qualify for Medicaid benefits in the future. Those benefits may be needed to cover the high cost of long-term care, which averages over $80,000 a year in the State of Texas. Considering the average length of stay in a long-term care facility is 2.5 years it is easy to see how paying for that care out of pocket could quickly deplete your life savings. Yet, without Medicaid you may be forced to pay out of pocket because neither Medicare nor most private health insurance policies cover long-term care costs. While Medicaid does cover costs associated with long-term care, you must first be found eligible for benefits.

Eligibility for Medicaid is based, in part, on an applicant’s income and countable resources. As a retiree your income may fall below the program limits; however, your countable resources could easily be valued at more than the program limits given the fact that the limit is as low as $2,000 for an individual applicant. If your assets exceed the limit you will be required to “spend-down” those assets until their value falls below the limit. Medicaid planning seeks to avoid the loss of assets by planning ahead and anticipating the need to qualify for Medicaid in the future.

A Medicaid trust is often used as part of an overall Medicaid plan. A Medicaid trust is an irrevocable trust that is created to take ownership of assets that would be considered countable resources when you apply for Medicaid. Because the trust is an irrevocable trust, once you transfer an asset into the trust it is no longer part of your estate and, therefore, no longer a countable resource. When created early enough, and drafted properly, a Medicaid trust can protect considerable assets. The key, however, is to start planning early by including Medicaid planning in your comprehensive estate plan long before you reach retirement age.

If you have additional questions about Medicaid planning contact the experienced Texas estate planning attorneys at The Mendel Law Firm, L.P. by calling 281-759-3213 to schedule your appointment today.

  • Author
  • Recent Posts
Stephen A. Mendel, Estate Planning Attorney
Stephen A. Mendel, Estate Planning Attorney
Mr. Stephen Mendel is an attorney who focuses a substantial part of his practice on estate planning. Mr. Mendel’s guiding principle is to provide his clients with quality legal services tailored to each client’s specific needs and goals.
Stephen A. Mendel, Estate Planning Attorney
Latest posts by Stephen A. Mendel, Estate Planning Attorney (see all)
  • Thought of the Day - March 22, 2023
  • Thought of the Day - March 15, 2023
  • Thought of the Day - March 8, 2023

Filed Under: Uncategorized Tagged With: Estate Planning

Other Articles You May Find Useful

  • Real Estate and Estate Planning
  • Thought of the Day
  • Avoiding Estate Planning Mistakes: A Guide for Newbies
  • Thought of the Day
  • Thought of the Day
  • The Importance of Estate Planning for Younger Adults

About Stephen A. Mendel, Estate Planning Attorney

Mr. Stephen Mendel is an attorney who focuses a substantial part of his practice on estate planning. Mr. Mendel’s guiding principle is to provide his clients with quality legal services tailored to each client’s specific needs and goals.

Primary Sidebar

The Mendel Law Firm

Follow Us

  • FB
  • TW
  • IN
  • RSS

Blog Subscription

Subscribe to our blog to get all of the latest updates from our attorneys.

HOUSTON

The Mendel Law Firm, L.P.
1155 Dairy Ashford, Suite 104
Houston 77079
United States (US)
Phone: (281) 759-3213
Fax: 281-759-3214

Map

map

Office Hours

Monday8:00 AM - 5:00 PM
Tuesday8:00 AM - 5:00 PM
Wednesday8:00 AM - 5:00 PM
Thursday8:00 AM - 5:00 PM
Friday8:00 AM - 5:00 PM

Footer

The Mendel Law Firm

The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an
attorney-client relationship.

© 2023 Mendel Law Firm, All Rights Reserved. Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys