Last Will and Testament

Helping clients accumulate and protect wealth

A will is a legal instrument which instructs a court how your things are to be passed on. As long as a written document, even handwritten, contains the elements necessary under Ohio law to be valid, it will be recognized by a court and followed.

The will must be written and signed, by a person 18 years of age or older, and must be contemporaneously witnessed by two persons uninterested in the property of the will. A written document satisfying these requirements will be recognized by an Ohio court.

After the death of the creator of the will, in order to be effectuated, the will must be filed with the probate court of the county of the decedent’s residence. Unlike in the movies, in Ohio there is no such thing as a “Reading of the Will.” Beneficiaries will be notified by the probate court of the filing of the will and a copy will be attached to the notice.

The positives of a will are that they are relatively inexpensive and easy to create and will cause your property disposed of exactly as you wish. The negatives of a will are that they must be filed with a probate court which could be expensive, all of your assets and debts will be public knowledge as probate court records are open the public and it is possible that your heirs will argue about who gets what and file a will contest in the probate court.

What is a Medicaid Trust?

A Medicaid Trust is a part of an estate plan which seeks to allow almost anyone to avoid Medicaid asset limits.  It is a completely proper and legal planning strategy.  

Assets are transferred into the Medicaid Trust and after five years, all the assets in the trust are ineligible for inclusion in one’s assets for Medicaid qualification purposes.  There are many different planning techniques using Medicaid Trusts and your exact situation will determine the proper plan. 

For example, if you transferred your home to your children four years ago, you may be completely ineligible for Medicaid. However, in this situation and many others, we can help restructure your assets and income and qualify you for Medicaid.  

The Medicaid system aims to avoid fraud in situations where transfers of assets are made purposefully to avoid the Medicaid asset limits.  However, careful planning, long term and in a crisis situation with a Medicaid Trusts can legally and properly transfer and rearrange your assets to provide maximum protection. 

The Benefits of Medicaid Trusts

Low Cost

Unlike long-term care insurance, this kind of trust will not require a big expenditure to set up. Long-term care insurance only grows more expensive as you get older, and the prohibitive coverage restrictions mean that you can’t guarantee that you’ll be covered even if you decide to take on the cost. It will protect your assets and save you money in the long run.

Protect Assets from Spend Down

In order to qualify for Medicaid, you’re required to “spend down” your assets. An irrevocable Medicaid trust will allow you to hold on to these assets and get the assistance from Medicaid that you need. Your family members will be able to keep the precious heirlooms or valued assets after you’re gone.

Adhere to the Law

You want to protect your assets to ensure that they’re distributed according to your wishes. Unfortunately, unless you protect them with this kind of trust, failing to report these assets when it comes time to apply for Medicaid is illegal— in fact, it’s considered to be fraud. It gives you the protection you want in a legal and fiscally responsible manner.

Is This Right Fit For Me and My Loved Ones?

Close to three-quarters of Americans over the age of 65 will require some form of long-term care assistance at some point. Even though long-term care isn’t on the horizon for you right now, it’s likely that you’ll need it eventually. Why not prepare for the inevitable? Forming this specific trust will simply dissociate you from your assets, enabling you to get the assistance you need as soon as you need it— without losing the assets you hope to pass on to loved ones some day.

While long-term care insurance might sound like a safer bet, it’s a bet that will cost you a lot of money in the long run. Choosing this kind of trust will give you the protection you want without the hefty price tag that’s routinely attached to long-term care insurance.

How Do You Plan For End of Life For a Loved One in Hospice or Palliative Care

Looking for solutions for your loved one? Our free guide can help you in planning and managing legal affairs.

How Does a Medicaid Trust Work?

Transfer Assets to Trust

The Grantor (i.e., the person or persons to whom the assets belong) transfers the assets to a Medicaid trust. There is a five-year “look-back” window, in which you’re permitted to transfer assets to the trust or “sell” assets to family or friends for below market value prior to applying for long-term care. If you don’t transfer or sell your assets within five years before you enter a long-term care or assisted living facility, transfer of these assets might not be permitted.

Apply for Medicaid Assistance

Medicaid covers long-term care costs for people who do not have the funds available to pay for their own care. However, this coverage will only begin after the Grantor has completely depleted their assets. This kind of trust legally disassociates the Grantor from their assets so Medicaid coverage can begin.

Health Care and Long-Term Care Facility Costs

Medicaid will pay the costs associated with health care, ranging from doctor visits all the way to nursing home and at-home health care. This coverage will last until your death.

Distribution of Assets

After your death, your beneficiaries will be awarded all of the assets in your Medicaid trust. They will not be required to reimburse Medicaid or the long-term care facility or at-home care professionals.

What If I Need More Than a Medicaid Trust?

Obtaining the services of an experienced elder care attorney is a step in the right direction. An elder law attorney will help you navigate the challenges related to issues that arise as you and your loved ones grow older. The Ohio Center for Elder Law and Trusts specializes in Life Care Planning and Elder Care Planning, ensuring that our clients are properly cared for and their loved ones are protected in the event of their death. The Ohio Center for Elder Law and Trusts is a member of Elder Counsel, an organization that focuses on providing quality elder law education. When you’re ready to discuss the many challenges that accompany aging, let’s talk.

Would you like to start the conversation about Medicaid trusts and life care planning?

Talk to an expert. Call us at 614-310-3110 or fill out the form to schedule a consultation.

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