New Jersey trust attorney Christine Matus (https://matuslaw.com/is-an-irrevocable-trust-protected-from-medicaid-in-new-jersey/) of The Matus Law Group has recently published an enlightening article titled ‘Is an Irrevocable Trust Protected From Medicaid in New Jersey? ‘. The piece provides a comprehensive overview of irrevocable trusts and their relation to Medicaid, a crucial topic for aging individuals and their families given the rising costs of long-term care.
“The process of ensuring long-term care can be daunting, but it need not be,” said Christine Matus, a seasoned New Jersey trust attorney. “An irrevocable trust can be a lifeline for those who may not have long-term care insurance, provided it’s set up correctly and in a timely manner.”
The article dives into the specifics of Medicaid eligibility and how assets placed in an irrevocable trust can be protected from Medicaid’s stringent asset qualification criteria. As per New Jersey trust attorney Christine Matus, “Assets placed in an irrevocable trust are no longer countable by Medicaid. This mechanism can shelter assets, safeguarding them from being depleted by the high costs of long-term care.”
Quoting recent data, the article notes that seven out of 10 individuals will require some form of long-term care in their lives, with New Jersey being one of the more expensive states for nursing home costs. Given these statistics, proactive measures such as establishing an irrevocable trust can be vital.
“An irrevocable trust, once established, can’t be revoked, providing a certain level of assurance that assets within it are protected,” Matus elaborates. “It’s essential, however, that the grantor, or the maker of the trust, is not a trustee or beneficiary to prevent any income or assets gained from the trust from being considered by Medicaid.”
The article further delves into the tax benefits of creating an irrevocable trust in New Jersey. It notes that the descendants of the creator of the trust will not have to pay taxes when the creator passes away. Additionally, the trust itself is not subject to capital gains taxes, providing another layer of financial protection.
“A well-structured irrevocable trust can shield assets from taxes and creditors while ensuring that loved ones are taken care of,” says Matus. “It’s a wise and practical step to consider for those seeking to protect their family’s future.”
In the final section of the article, the New Jersey trust attorney provides guidance on how to protect a home from Medicaid by placing it in an irrevocable trust, offering a viable solution to the Medicaid “look-back” period.
“Medicaid has a five-year ‘look-back’ period, during which all financial transactions made by the individual are considered,” Matus explains. “Creating an irrevocable trust well in advance of this period, with careful planning, can ensure that Medicaid does not count the assets in the trust against you.”
The article ends by encouraging readers to consult with a reputable trust attorney to navigate the complexities of Medicaid and irrevocable trusts, emphasizing the importance of proactive measures and careful planning.
About The Matus Law Group:
The Matus Law Group is a reputable law firm in New Jersey, known for its commitment to providing quality legal services in matters related to estate planning, real estate law, and special needs planning. Led by attorney Christine Matus, the firm has a proven track record in helping clients navigate complex legal matters with compassion and professionalism.
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