Seniors want to live at home and independently and why not? In our experience, the most important and valuable asset is one’s home. So, how does one protect the home while also accessing Medicaid for long term care and a Reverse Mortgage for living expenses?

When meeting with seniors, one of the most valuable planning tools in our tool kit is the use of the Medicaid Asset Protection Trust.

Lenders have been unwilling to provide a reverse mortgage when the home is owned by this type of Trust, but we have just learned that at least one lender is willing to approve reverse mortgages even when the home is in this type of trust.

If the senior is uninsurable or can not afford the premiums of Long Term Care Insurance, then the only program available to pay for long term care is the Medicaid Program.

With the Medicaid Asset Protection Trust, seniors are able to place their home in the trust and still continue to receive all the benefits of ownership including the exclusive use of the home during their lifetime while accessing Medicaid. They have also taken a step to protect their home from estate recovery if they later need Medicaid nursing home care. Of course, the transfer will have to be greater than five years from the time Medicaid is applied for in order to be eligible for Medicaid nursing home care.

Now, if seniors need additional income to meet their living expenses, they will be able obtain a reverse mortgage and protect the home. It is very important to analyze if the reverse mortgage is the best choice for the senior before the senior takes this step.

For more information on these strategies, please contact Vincent J. Russo & Associates, P.C. at 1-800-680-1717.