Medicaid, Medicaid Qualifying Income Trust, Special Needs Trusts, & Asset Protection Trusts Attorney in Alaska

Medicaid, Medicaid Qualifying Income Trust, Special Needs Trusts, & Asset Protection Trusts

When an individual with limited or no income needs health care, they can seek out a federal program known as Medicaid to assist them. Medicaid comes with a number of strict income and asset limits, and can be tricky to negotiate when the individual isn’t well-versed in the rules that regulate income and assets. That’s why it is best to seek out an Alaska-based medical planning attorney who knows how to work with this system of rules and regulations.

A Medical Planning Attorney is an estate planning attorney who specializes in protecting the rights of special needs patients and their family. He or she can save those in need of Medicaid a great deal of problems and prevent disappointments and frustrations later on. AK Wills and Trusts regularly works with clients who need these services as well as others. Let’s dive into this subject a little deeper.

Alaska has two types of trusts that can protect and assist in Medicaid eligibility: Medicaid Income Trust and a Special Needs Trust.

Medicaid Income Trust

A Medicaid Income Trust is used when someone's income is above Medicaid’s permitted threshold. It allows them to access Medicaid’s services and use the income that is above the threshold to cover medical costs that exceed Medicaid’s budget. Once a trust is established, the individual's earnings are deposited and a monthly income limit is withdrawn. The surplus funds remain in the trust and are eventually used to reimburse Alaska for medical services provided.

An Alaska-based medical Planning Attorney who knows state and federal laws can help set up a trust and make sure that it is used to protect the interests of the client who needs access to Medicaid and other services. They will assist in creating spending limits so that the client is protected from losing their Medicaid due to misspending or overspending.

Special Needs Trust

In situations where an individual has too much property or too many assets, a special needs trust can be established. The trust is established to ensure that the property is used exclusively for the individual's special needs.  These are special needs that Medicaid does not provide items or services for.

Two Kinds of Special Needs Trust

Two Kinds of Special Needs Trust

First Party Trust— entails the individual placing their own property in the special needs trust

Third Party Trust—When an individual is gifted property or assets by a third party

For example, if a grandparent were to leave a substantial inheritance to someone on Medicaid, it could cause an excess of assets. This can be a problem as it can make the individual ineligible for Medicaid services. The best way to navigate this legally is to establish a special needs trust with a third party to hold the gift or inheritance for the individual’s benefit.

It’s crucial that the special needs trust cover only expenses not covered by Medicaid, as failing to abide by the rules can result in being dropped by Medicaid and forced to repay the funds provided. This is why the expertise of an Alaska trust attorney services is so important. You need a professional who understands the laws and the needs of these clients is so important when setting up this kind of trust.

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Our founder, Constance A. Aschenbrenner, has worked in Alaska since 1996 in different legal roles, including private, corporate, and state practice. In addition, she served as an assistant public defender. She created the Law Office of Constance A. Aschenbrenner in July, 2008. Serving the people of Alaska is her passion, and she finds fulfillment in helping them succeed.

Tap into the wealth of knowledge from an experienced Alaska Estate Planning Attorney. Our mission at the Law Office of Constance A. Aschenbrenner is to empower Alaska residents, one client at a time. 

When you need Alaska trust attorney services, Call Constance A. Aschenbrenner at Alaska Wills and Trusts to talk to an experienced estate planning expert, or to schedule a free consultation.