Q: What trust should I use to protect mom’s assets if she enters long-term nursing care? How long will it take to be in effect? What else can we do?
A: If it is foreseeable that mom will run out of funds to pay for nursing care, an application for Medicaid eligibility may be necessary. Medicaid has a look back period of five years. This means that any transfer of her assets in those five years, that are done without consideration (like a gift to a child), can render her ineligible for Medicaid. A penalty would be assessed in the dollar amount of the gift. I don’t have nearly enough information to advise you here. Consult with an elder law attorney who is versed in Medicaid regulations.