Older couple preparing their assets and planning for medicaid
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If you are ready to get started implementing asset protection strategies for Medicaid planning in Wisconsin, Borakove Osman LLC is the place to call. Our experienced estate planning attorneys have an in-depth understanding of federal and state law and well-developed asset protection strategies to help you safeguard your estate from any eventualities. While no one knows what the future holds, our capable legal team can help you prepare for whatever comes.

Medicaid, though a godsend for many when it comes to long-term care, is a complex system, confusing and difficult to navigate. Therefore, it is important to have the services of a well-informed estate planning attorney to help you understand and prepare for it well before you may need to tap its resources. 

According to the U.S. Department of Health and Human Services, 70 percent of 65-year-olds will require long-term care at some point in their lives. Because of the exorbitant cost of long-term care, mostly provided in nursing homes, the majority of these individuals will depend on Medicaid to meet expenses. Since Medicaid is a means-tested government benefit, with a look-back period of 5 years, this means that most of us will have to prepare to qualify by using asset protection strategies. 

How Medicaid Works

Medicaid is a joint federal and state program, providing health coverage to millions of Americans, including eligible low-income adults, children, pregnant women, elderly adults, and people with disabilities. The hitch is that Medicaid will determine your eligibility by examining your finances to make certain you meet its stringent income and asset requirements. 

How Borakove Osman Will Protect Your Assets From Medicaid Look Backs

Medicaid will look back 5 years to make sure you haven’t sold or given away property in order to qualify. You must keep careful records of transactions during those years since your finances may be scrutinized. If Medicaid finds inappropriate discrepancies, they may impose penalties that will delay your eligibility. Our skilled legal advocates will be invaluable in helping you plan ahead to avoid snags by using one or more of the following asset protection methods:

LLCs (Limited Liability Companies)

Forming an LLC can be an effective strategy to protect certain assets. By transferring property or business interests into an LLC, you can potentially shield these assets from Medicaid’s asset count. However, it’s crucial to execute this well before the look-back period to avoid penalties.

Liability Insurance

Liability insurance, particularly long-term care insurance, can also offer significant protection. By having this insurance, you can cover some of the long-term care costs independently, reducing the need to deplete their assets in order to maintain Medicaid eligibility.

Various Types of Trusts

Trusts are useful tools in many aspects of estate planning and can be a cornerstone in planning for Medicaid.

Irrevocable Trusts

Irrevocable trusts are often used in Medicaid planning. Once assets are transferred into an irrevocable trust, they are no longer considered part of your estate for Medicaid purposes. Of course, the trust must be created well before the look-back period.

It should be noted here that revocable living trusts while offering a great deal more flexibility and control than irrevocable trusts, are not effective for Medicaid planning since the assets within are still considered countable for Medicaid eligibility.

Special Needs Trusts

These trusts are designed for beneficiaries with disabilities, allowing them to receive inheritances or gifts without affecting their Medicaid eligibility, and may be immensely helpful if you are dealing with the needs of an aging parent or a special needs child.

Income-Only Trusts

An income-only trust permits the beneficiary to receive income generated by the trust’s assets while the principal remains protected, thereby aiding in Medicaid eligibility.

Contact Our Madison Asset Protection Attorneys Today

Understanding and utilizing asset protection strategies is vital for anyone with foresight. At Borakove Osman, our legal team is dedicated to helping Wisconsin residents plan thoughtfully for all future possibilities — not only the pleasures of grandchildren and retirement but the comforts of long-term care if it becomes necessary. Because our goal, like yours, is to provide you with financial security and peace of mind, we will tailor our asset protection strategies according to your circumstances and personal preferences.

Borakove Osman, LLC is your trusted partner for asset protection and Medicaid planning in Wisconsin. Serving all of Wisconsin, including Madison and Dane County, we are dedicated to providing high-quality legal advice and representation to help you secure your family’s future.