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One of the biggest risks to homeowners in Minnesota facing long-term care needs is losing their home to cover the costs of nursing home or assisted living expenses. Many people believe their home is safe if they have a Will or if they’ve added a loved one’s name to the title. However, this common misconception can have devastating consequences for families when a loved one requires long-term care.
Metropolitan Law Group and Attorney Lisa Haster often meet clients in Minnesota who are shocked to learn that a Will or adding names to the title won’t actually protect their home from nursing home or assisted living expenses. If a loved one passes away with outstanding medical expenses or long-term care costs, the probate court may require the home to be sold to cover these debts.
In fact, more than 60% of our probate clients find themselves in this very situation, thinking that their Will would provide enough protection. However, the only way to shield your home from the financial burden of long-term care is with a specialized trust, known as a Medicaid Protection Trust.
Why a Medicaid Protection Trust is Essential in Minnesota
A Medicaid Protection Trust, also called an Irrevocable Medicaid Trust, is a legal strategy used to safeguard your home and other assets from being used to pay for long-term care costs, including nursing home expenses. By transferring your home into a Medicaid Protection Trust, you create a legal shield that protects your assets from creditors, ensuring that your property is preserved for your family and loved ones.
In Minnesota, Medicaid (also known as Medical Assistance) has strict rules regarding asset transfers. Assets held in a Medicaid Protection Trust are no longer considered “countable” by Medicaid. This means that if you or your spouse needs long-term care, Medicaid cannot require the sale of your home or use its value to cover nursing home costs—even after you pass away.
Timing Is Everything: To be effective, this trust must be in place at least five years before either spouse enters a nursing home. Medicaid has a “look-back” period of five years, which means they’ll review any asset transfers or trusts created within the five years before nursing home care is needed. Waiting too long could make the trust ineffective, as Medicaid may still count those assets and require that they be used to pay for care.
Why Wills Alone Don’t Protect Against Nursing Home Costs
One of the most common estate planning misconceptions is that a Will alone will protect your home. A Will simply directs who will inherit your property after you pass—it does not provide any protection from creditors or long-term care costs. If you have outstanding medical or long-term care bills, the probate court may require your home to be sold to cover these costs.
Similarly, adding a loved one’s name to the title doesn’t offer legal protection either. Not only can this lead to tax and liability issues, but Medicaid may still treat the home as an asset, leaving it vulnerable to creditors and long-term care costs. The only way to fully protect your home from nursing home expenses in Minnesota is through a Medicaid Protection Trust, crafted with the guidance of an experienced attorney like Lisa Haster.
Benefits of a Medicaid Protection Trust for Minnesota Residents
Establishing a Medicaid Protection Trust with Metropolitan Law Group can offer peace of mind, knowing your assets are protected for future generations. Here’s how a Medicaid Protection Trust can benefit you:
- Protects Your Home from Nursing Home Costs: Once your home is in a Medicaid Protection Trust, it’s protected from being counted as an asset if long-term care is needed.
- Secures Assets for Your Surviving Spouse: A Medicaid Protection Trust ensures that a surviving spouse can stay in the home without the risk of Medicaid recovery.
- Preserves Your Legacy: This trust structure ensures your home and other assets are passed down to loved ones without risking liquidation to cover nursing home expenses.
- Maintains Privacy: Unlike Wills, which are public in probate, a trust keeps your assets private and shielded from public view.
Estate Planning is About Protection, Not Just Distribution
At Metropolitan Law Group in Minnesota, we know that estate planning is about more than deciding “who gets what.” It’s about making sure that what you’ve worked for stays protected for your family. A Medicaid Protection Trust is one of the most effective tools to protect your home and other valuable assets from the high costs of nursing home care.
If you’re considering protecting your home from long-term care expenses, don’t wait. Because of the five-year Medicaid look-back period, this planning must be done well in advance of any need for nursing home care.
Take Action to Secure Your Home: Contact Us Today
For Minnesota residents, estate planning with Metropolitan Law Group and Attorney Lisa Haster can ensure that your home remains safe for your loved ones, protected from the high costs of nursing home care. Don’t wait until it’s too late to secure your family’s future.
To discuss how a Medicaid Protection Trust can help protect your home and assets, schedule a consultation with us today. Visit our Contact Page or call us at (612) 524-9414 to take the first step in securing your home and ensuring your family’s financial future.
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