Ask an Advisor: Can a Nursing Home Access Our $100K IRA If We Have a Trust?

Core Insights - The article discusses the challenges of protecting assets, particularly an IRA worth $100,000, from long-term care (LTC) costs, especially in relation to Medicaid eligibility [3][4]. Medicaid Eligibility and Asset Protection - Medicaid is often seen as a more affordable option for long-term care, but strict income and asset limits can disqualify individuals with significant assets like a $100,000 IRA [3]. - The paradox arises where the assets intended to secure affordable healthcare can hinder access to that very care due to eligibility restrictions [4]. Strategies for Asset Protection - Annuities: Investing in a "Medicaid-compliant" annuity can exempt funds from asset limits and the lookback period, but the funds become inaccessible except for periodic payments, which count towards income limits [6]. - Home Equity: Generally, equity in a primary residence does not count against Medicaid asset limits, allowing for asset protection through mortgage payments or home upgrades, though the lookback period applies [6]. - Trusts: Establishing a Medicaid asset protection trust (MAPT) can effectively transfer ownership of assets, making them exempt from Medicaid eligibility calculations, provided the transfer occurs five years prior to applying for Medicaid [6].