How the Rich Protect Their Assets While Staying Eligible for Medicaid

If any of this is helpful, tune in to my new podcast, Your Money Guide on the Side, by clicking the link in my bio.

1. Establishing a Medicaid Asset Protection Trust

Start by establishing a Medicaid Asset Protection Trust. Once assets are placed in this trust, they're no longer counted toward Medicaid eligibility limits, allowing individuals to qualify without having to say goodbye to their life savings or their legacy.

2. Understanding Irrevocability

However, these trusts are irrevocable, meaning once the assets are transferred into it, bye-bye assets and bye-bye control.

3. Protection from Creditors and Medicaid Recovery

Placing assets in the trust ensures that your assets are protected from creditors and Medicaid recovery efforts.

4. The Five-Year Look-Back Period

And this goes out to all you pesky procrastinators out there, I see you! Medicaid enforces what's called a five-year look-back period to prevent applicants from transferring assets shortly before applying for benefits. The transfers must occur at least five years prior to avoid penalties.

Conclusion

So what's the right answer for you? I have no idea. But I do know if you haven't seen The Last of Us on Max, it's one of the best shows of the year by a long shot—and I don’t even like zombie shows!

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