Why Medicaid Planning Matters — and How an Irrevocable Trust Can Help

Rising long-term care costs can quickly drain a family’s savings, and many people are surprised to learn that Medicare offers very limited coverage for this type of care. Medicaid can help, but qualifying requires meeting strict income and asset limits. That’s why planning ahead is essential.

The Value of Early Medicaid Planning

Proactive planning helps you:

• Protect assets for your spouse or heirs

• Maintain eligibility when long-term care becomes necessary

Without preparation, families may be forced into rapid “spend-down” of their savings just to qualify.

How an Irrevocable Trust Fits In

An irrevocable trust is one of the most effective tools for Medicaid planning because it can:

• Remove assets from your personal ownership, helping you meet Medicaid’s asset limits

• Prevent unnecessary spend-down, preserving wealth for your beneficiaries

• Provide income options, depending on how the trust is structured

• Support broader estate and tax planning goals

Because Medicaid reviews transfers made within its five-year look-back period, timing is crucial. Establishing a trust early gives you far more flexibility.

Partnering With Professionals

Medicaid planning involves financial, tax, and legal considerations. As CPAs, we help clients evaluate their options, coordinate with attorneys, and build a plan that protects both care needs and long-term financial goals.

If you’re thinking about future care planning, we’re here to guide you through your options.