Protect Your Parents’ Legacy:

As adult children, it’s natural to feel a deep sense of responsibility for your parents as they age. Watching them work hard throughout their lives to build a legacy makes it all the more devastating to think of those assets—homes, savings, and cherished belongings—being forfeited to cover the cost of long-term care. This reality strikes many families navigating the complexities of Medicaid eligibility.

But there’s good news: with proper planning, you can protect your parents’ assets and ensure their legacy is preserved. The solution lies in private trusts—a powerful tool that, when implemented at the right time, offers relief from the stress and heartbreak of asset forfeiture.

The Risk of Asset Forfeiture for Elderly Medicaid Recipients

Medicaid provides critical assistance for elderly individuals who require long-term care, but it comes with a catch. To qualify, recipients must have limited financial resources. If your parents own significant assets, they may be required to "spend down" their wealth or risk having those assets seized to cover care costs.

Without foresight, this can lead to:

The sale of a beloved family home

to pay for assisted living.

Drained savings accounts

meant for heirs or emergencies.

Loss of generational wealth

your parents worked a lifetime to build.

These outcomes can leave families feeling helpless, overwhelmed, and robbed of security.

The Solution: Private Trusts

Private trusts offer a secure way to shield assets from Medicaid's reach while ensuring your parents' needs are met. By transferring assets into a properly structured private trust, your parents can protect their wealth and still qualify for Medicaid when the time comes.

However, timing is critical. Medicaid’s

five-year look-back period

examines financial transactions made within five years of applying for assistance. Any transfers into a trust during this window could disqualify your parents from Medicaid benefits.

To protect your parents’ assets, the best time to act is now

—well before the need for long-term care arises.

How Private Trusts Work

Transfer Assets Early

: By placing assets into an irrevocable private trust, ownership is legally separated from your parents. This keeps those assets out of Medicaid’s calculations.

Designate a Trustee

: A trusted individual or professional manages the trust to ensure its terms are honored, while your parents retain the benefit of the assets.

Secure the Future

: The assets in the trust remain protected, providing peace of mind that your family’s legacy will stay intact.

Benefits of Acting Now

Avoid Asset Forfeiture

: Protect homes, savings, and investments from being seized to pay for care.

Preserve Generational Wealth

: Ensure that your parents’ legacy is passed down to future generations.

Reduce Stress and Uncertainty

: Gain peace of mind knowing your family is prepared for the future.

Maintain Dignity and Independence

: Empower your parents to receive the care they need without sacrificing their life’s work.

A Compassionate Path Forward

At its core, planning for your parents’ future is an act of love. It’s about ensuring their hard-earned legacy isn’t lost and relieving the heavy burden of financial worry. The thought of Medicaid taking everything doesn’t have to keep you awake at night. With a private trust, you can protect your family’s assets while providing your parents with the care they deserve.

Don’t wait for a crisis to force difficult decisions. Start the conversation with your parents and explore private trust options with a qualified professional. The earlier you act, the more effectively you can safeguard your family’s wealth and create a secure, dignified future for your loved ones.