Medicaid Planning: Asset Protection
There are legal methods for protecting assets to prevent the state from seizing the assets to cover your Medicaid expenses. There are also many ways that you can be rendered ineligible for Medicaid benefits if you transfer assets.
With a thorough Medicaid asset protection plan that includes proper tax planning, you can legally gift your assets to loved ones to qualify for Medicaid benefits, when needed.
Since March 1, 2005, the Medicaid "look back" period is five years when reviewing dates of asset transfers or gifting. Medicaid "look back" periods are used for penalty purposes in determining Medicaid eligibility.
Planning for Medicaid asset protection also involves several tax considerations connected to income tax and gift tax. While a Medicaid plan is not normally designed to secure major tax savings, failure to follow tax laws can result in payment of extra taxes.
It is important to consult with a law firm that has both Medicaid and tax experience when planning for Medicaid asset protection. Kennedy West partner, attorney Charles Kennedy, has worked as a Certified Public Accountant for several years prior to devoting his full attention to the practice of law.
Let the experienced elder law attorneys of the Dallas, Fort Worth area law firm of Kennedy West help you protect your family assets. Call (817) 566-0606 today for a no charge initial consultation!
