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Mechanicsburg Middle-Class Asset Protection Attorney

Mechanicsburg Middle-Class Asset Protection Attorney

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Safeguarding Your Family’s Home from Medicaid

When it comes to legal tools like trust and tax planning, many people assume they are only relevant to the ultra-wealthy. However, the truth is that middle-class families can greatly benefit from employing asset protection strategies. This is especially crucial for middle-class parents seeking to pass down assets, such as their home, to their children.

At Keystone Elder Law, P.C., our Mechanicsburg middle-class asset protection lawyers specialize in advising you on the most effective methods to safeguard your family’s financial legacy. Whether you aim to shield your assets in the event of Medicaid applications or maximize potential tax savings, we will help you develop a customized plan that best suits your family’s needs. Contact us today to schedule a confidential, no-obligation consultation so we can better understand your family and their requirements.

Shielding Assets from Medicaid and Inheritance Taxes Using Trusts

For many Mechanicsburg middle-class families, their most valuable asset is their home. Consequently, one of the most frequently asked questions we encounter is, “Will I lose my home if I need Medicaid to cover nursing home costs in the future?” This is where collaborating with a middle-class asset protection attorney becomes crucial.

The reality is that nursing home care costs are continuously rising. In 2023, the average person can expect to pay approximately $11,000 per month for full-time nursing home care, a financial burden most middle-class families cannot bear alone. Consequently, Medicaid becomes a necessary option for assistance.

While Medicaid can cover nursing home expenses, it comes with significant implications. To qualify for Medicaid, applicants must fall below specific asset and income thresholds. Furthermore, Medicaid often seeks reimbursement from the estate of deceased beneficiaries, which frequently includes a parent’s house for middle-class families.

However, appropriate planning can protect a home and other middle-class assets from Medicaid. At Keystone Elder Law, P.C., we regularly assist clients in establishing Medicaid Asset Protection Trusts. These irrevocable estate planning trusts allow you to legally shield certain assets from Medicaid. It is crucial to set up such trusts well in advance of the actual need for Medicaid, as there is a five-year “lookback” period for new applicants. Essentially, if you attempt to establish a trust at the last minute or transfer your home as a gift to your children, Medicaid will impose penalties.

Setting up the right trust can also provide additional estate administration and tax benefits for Mechanicsburg middle-class families. Assets held within a trust are excluded from a person’s gross estate for Pennsylvania’s inheritance tax purposes. Consequently, this can result in substantial savings for inheritances passed on to children or other descendants.

Our Mechanicsburg Middle-Class Asset Protection Attorneys Are Here to Assist You

When it comes to asset protection, the key is not to delay. It is crucial to initiate the planning process long before any crisis arises and you or a family member find yourselves in need of government benefits. The Mechanicsburg middle-class asset protection lawyers at Keystone Elder Law, P.C., are prepared to provide you with comprehensive assistance. Call us today to schedule a consultation and take the necessary steps to safeguard your family’s assets.

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Comprehensive Interdisciplinary Approach

Empowering Clients with Holistic Planning at
Keystone Elder Law

At Keystone Elder Law, we believe that the physical, social, legal, and financial considerations of our clients all intertwine. We utilize an interdisciplinary approach to evaluate each area, which allows for the creation of a plan that addresses the concerns of the individual as a whole as well as the family. To this end, our model of practice includes a Care Coordinator (usually a nurse or social worker), whose expertise complements our team of attorneys.

When the road of life is smooth, decisions about legal and financial matters are easy to push aside for “a rainy day.” Planning ahead, however, will allow for more options as you view the map of where you’ve been and where you want to go. Don’t let a crisis limit your choices or derail your plans.

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