Medicaid Planning Trusts

Michigan Irrevocable Trust for Asset Preservation

When exploring options for protecting assets in order to qualify for Medicaid benefits, it is essential that you consult with an experienced and knowledgeable lawyer. We at Willis Law have extensive knowledge of how to utilize trusts to your benefit. Our attorneys meet with clients and assess their specific situations, moving forward with establishing the types of trusts or other planning strategies that best suit their current and future needs.

Our law firm is dedicated to a Christian model of service with a mission to protect clients as they make the best decisions for their family and future. Let us guide you with dignity and discretion.

Call (888) 461-7744 or contact us by email for a consultation with a Grand Rapids Medicaid planning lawyer.

Irrevocable Trusts

Since the assets in a revocable trust are considered by Medicaid as countable in determining eligibility, they are of no use in Medicaid planning. However, irrevocable trusts are many times of high value for Medicaid planning purposes. These types of trusts may not be changed after creation.

The assets of irrevocable trusts are sometimes paid to your spouse, using what is called a Medicaid Trust or Medicaid Annuity Trust, and then other times a Spousal Annuity Trust, and then paid to your heirs at your death. In other cases, irrevocable trusts are established for the benefit of the Medicaid applicant using his or her own assets, or are established for the benefit of a child or another relative who is a Medicaid recipient. In the context of a Medicaid Trust for an applicant's spouse, eligibility can be maintained immediately upon transferring all countable assets into such a trust.

When a private trust is established using the assets of the Medicaid applicant, the trust must maintain a Medicaid payback provision. This is not the case when a trust is established for the benefit of someone other than the applicant. Any of these variety of trusts, when properly employed, are considered exempt assets for Medicaid planning purposes, and no divestment penalty applies for establishing such a trust.

Testamentary Trusts

Created under a will, testamentary trusts are a "safe harbor" according to Medicaid rules, as they are created by a deceased spouse for the benefit of a surviving spouse. The assets of these types of trusts are treated as available to the Medicaid applicant only to the extent that the trustee has an obligation to pay the applicant's support. The funds in a testamentary trust can be used to help pay for services that are not covered by Medicaid.

Supplemental Needs Trusts

Medicaid has certain rules that govern the transfer of assets for the benefit of disabled individuals under 65. If structured properly, the funds will not be considered when determining Medicaid eligibility.

It is important to note that after the beneficiary of the supplemental needs trust dies, the state must be reimbursed from the trust for any Medicaid expenses that were spent on behalf of the individual.

Contact Our Kalamazoo, Michigan, Medicaid Planning Attorneys

For a free consultation, please call our Grand Rapids, Michigan, lawyers toll free at (888) 461-7744 or contact us by email to submit a question about your case.

Testimonials

  • Willis Law You can be sure that if we need further advise in the future your office will be our choice.
  • Willis Law I cannot say enough about the professionalism, integrity and honesty and legal acumen I have found in working with the entire staff.
  • Willis Law Words cannot begin to express my gratitude for what you have done regarding my legal matter.
  • Willis Law We have referred you to several family members and friends.
  • Willis Law I've worked with several attorneys in the Kalamazoo area, and Michael is, without a doubt, extraordinary.
  • Willis Law A truly excellent experience from start to finish.
Prev Next

Helping You Achieve the Best Possible Outcome

  • Roots from a Judge

    Sons of former judges, our firm’s co-founders are deeply rooted in our community and have been exposed to the law from a young age.

  • Service to Others

    We demonstrate compassion and consideration for others, putting your needs or desires ahead of our own to treat you the way you appreciate being treated.

  • Integrity, Honesty, & Accountability

    Willis Law adheres to a code of moral and ethical standards, is truthful in all things, and takes responsibility for our actions.

  • Empathy & Kindness

    We are considerate to exemplify good work ethics. Our lawyers strive to actively participate and engage in your feelings or ideas.

  • Excellence

    Our results and behavior represent the standard to which others should strive. We conduct ourselves to the highest standards in everything we do.

  • Dependability

    We are dependable, adhere to scheduled work hours, are considerate of needs in planning time off, consistently follow policies and procedures, and exemplify good work ethics.

  • Professionalism

    We demonstrate a professional attitude, appearance, and approach, seek personal and professional improvement, and initiate opportunities to improve contributions to the firm.

  • Commitment, Dedication, & Loyalty

    We demonstrate an allegiance and faithfulness with a determination toward a common goal of attaining excellence in service. We actively promote the firm and its values.

Email Us For A Free Consultation

    • Please enter your name.
    • This isn't a valid phone number.
    • Please enter your email address.
      This isn't a valid email address.
    • Please make a selection.
    • Please enter a message.
E-mail Disclaimer: Please be advised that contacting Willis Law or one of its attorneys by email does not constitute establishing an attorney-client relationship or otherwise confidential relationship between you and the Firm. Please do not give us any information you regard as confidential until a formal attorney-client relationship has been established. Do you wish to proceed?
Put Us On Your Side