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New Mexico Medicaid Planning

Medicaid is in place for people who have health needs but lack the financial stability to seek out care on their own. While Medicaid is beneficial to those who qualify, many people simply don’t due to the amount of assets in their possession. While these assets disqualify them for Medicaid, that doesn’t mean they can afford the exorbitant costs of long-term care.

Walk-In Wills wants our clients to be able to look at the future with confidence. That’s we provided Medicaid planning assistance to people in New Mexico. There are certain ways you can structure your estate plan so that your Medicaid benefits are not taken away.

How to Structure Your Estate Plan

No matter your age or state of health, Medicaid planning should be a part of estate planning discussions. While you can save money for long-term care, or even invest in long-term care insurance to cover costs, these options might not be feasible.

In this case, you’ll need to structure your estate plan in a certain way to ensure you remain eligible for Medicaid benefits. You can do so in the following ways:

  • Create a Specialized Trust – Because assets placed within a trust are no longer owned by the trust creator, they won’t count towards your assets when you apply for Medicaid. If you still want access to this money, you can establish adult children as trustees and have them pay you income. Keep in mind that you won’t be able access money in the trust on your own, since it’s now owned by the trust itself. You must also transfer these assets more than five years prior to you needing long-term care.
  • Imbue Trustees With Flexibility – The above prospect can be a bit intimidating, since you won’t be able to access the money you place into the specialized trust. In this case, you can provide more authority to your trustee for something like a revocable trust. That way, the person can sell property as needed to help you meet the income and asset qualifications so you can meet Medicaid. Your successor trustee will take over when you die, or when you’re considered incapable of making financial decisions on your own. This could be due to incapacity related to illness or injury.

Simple Answers to Complex Questions

Long-term care planning is on the minds of many people, including those who won’t need assistance for many years. We can help you make the proper alterations to your estate plan so long-term care options are available. We’ll also help you with other processes, including living wills and powers of attorney.

Contact Walk-In Wills today by calling (505) 903-7000. We’ll be happy to discuss your long-term planning needs during your free one-hour consultation.

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