Georgia families who want to plan ahead for late-life care needs may want to consider an irrevocable trust. When it comes to qualifying for Medicaid, the manner in which assets are held or distributed is incredibly important. Timely Medicaid planning can ensure that a Georgia resident or loved one has the care that is needed when the time comes.
A revocable trust allows the creator to fund the trust with a range of assets, and retain the ability to access those assets at any time, for any reason. The problem is that creditors also retain the right to access funds held in a revocable trust. Medicaid is considered a creditor, and thereby becomes a beneficiary of a revocable trust.
In contrast, an irrevocable living trust restricts the creator's ability to access the funds held within. That also means that creditors are restricted from getting to those assets. Such trusts can be structured to pay income to the creators, which would then be available to creditors like Medicaid. However, distribution of that income can be stopped if sufficient time has passed since the irrevocable living trust was created.
An irrevocable living trust is one of several Medicaid planning tools available to Georgia residents. There are many avenues to consider, and a solution to suit virtually every set of needs. The process begins by sitting down with a skilled elder care attorney who can lay out the options and help you make an informed decision. As with so many financial matters, getting an early start is the best way to ensure a favorable outcome.