Page 10 - Medicaid New Client Welcome Guide

Asset Protection Strategies

AT A GLANCE

P O O L E D S P E C I A L N E E D S T R U S T
PROS:

1. Shelters income and/or assets
2. May use funds for more than just medical expenses

3. May designate beneficiaries
CONS:
1. Managed by a third party

2. Fees incurred to establish trust and maintain account
3. State of Florida is always the first beneficiary upon passing

P E R S O N A L S E R V I C E S C O N T R A C T

PROS:
1. Shelter assets by paying a caregiver you appoint

2. No Medicaid payback
CONS:

1. Funds are considered income to the recipient creating a taxable event

R E A L E S T A T E I N V E S T M E N T
PROS:

1. Shelter assets by converting it into a rental income
2. There is no Medicaid payback

3. May designate beneficiaries
S P E C I A L N E E D S P O O L E D T R U S T
CONS:
1. Income is considered part of the "patient responsibility" payment

2. Funds are invested for 5 years and early termination may result in penalty fees
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