Medicaid Planning 101; protecting your home

If you receive Medicaid assistance, once you die the state has to try to recoup whatever moneys you have received for your care. This is also known as “Estate Recovery.” The first place they will look will be your home. There are ways to protect your home from recovery by the state by transferring assets.

Trusts; Cohen & Oalican, Boston, Raynham and Andover Massachusetts

Transferring your home to an irrevocable trust is one way to protect your home. If your house is sold the money must stay in the trust. If done right, $250,000 in taxable gain can be excluded for the settlor. Be careful though; once your house is in the irrevocable trust you can not take it out.

Protect your home with Life Estates; Elder Law

The easiest way to protect your home from estate recovery is by setting up a life estate. A life estate is when 2 or more people own a property. You will have primary ownership of the home for life. The second owner has ownership interest in the home but can not solely take the home until you die. At death, the home will be directly passed to that person that has interest in the home. Once the house is passed on to the other interested party, the state can not recover the home to repay Medicaid expenses.

Attorneys Cohen & Oalican specialize in Elder Law; where protecting your assets and your dignity is their core mission.