Medicaid coverage is essential for low-income households struggling to pay their health care bills. Even with health insurance these medical bills can be very expensive. There are also some medical conditions and situations that are not being fully covered by Medicaid. To prevent these situations from happening, Medicaid offers something called asset protection trust.
First, Medicaid asset protection is a plan to help you better manage your healthcare bills. This plan works great for parents with children or married couples that are unable to afford the premiums, and who have also been turned down for long-term insurance. The process is very simple. You appoint your spouse or at least one adult child as your trustee. They will act on the asset, based on what you have agreed upon, and because since this is a legal matter, a lawyer must be present when you sign the papers.
You and your trustee should not treat this trust as a rainy day savings account. Technically, you can use it to pay your utility bills, but that would only nurture a bad habit. This plan is put into place to ensure that when you need the trust to cover your medical expenses after the five years period is over, you will find yourself with enough credit to cover most or all of your medical bills. If you do happen to find yourself in a bad financial situation during this time, you should contact your lawyer and ask for them to help you with possible solutions.
In general, the Medicaid asset protection will work best for those who have extra income and looking to reinvest that money but cannot afford regular insurance. It also works for families who are looking for short-termed investment. If you are interested in signing up for this plan, consult a local law firm to get more information.
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