Receiving a diagnosis of Alzheimer’s or a similar form of dementia can be daunting. However, taking proactive measures now can help mitigate future difficulties. This disease gradually disrupts cognitive functions, impacting daily activities for both the person affected and their caregivers. Planning ahead allows you to make informed choices concerning healthcare, finances, and end-of-life wishes, ensuring your preferences are honored.
To better understand what these plans include, in the following guide, we will explore ways to safeguard the assets of someone with dementia and review how an experienced elder law attorney can help you.
How To Protect Your Loved One’s Assets
There are several estate planning documents that can safeguard the assets of individuals with dementia, including the following options:
Create a Medicaid Asset Protection Trust
In Louisiana, creating a “Medicaid Asset Protection Trust” (MAPT) is widely regarded as the best way to safeguard the assets of individuals with dementia. This approach enables them to qualify for Medicaid benefits and simultaneously preserve their assets for their beneficiaries. It accomplishes this by transferring ownership from their name to the trust.
However, before setting up a MAPT, it is important to consider the following:
- Asset protection: Transferring assets to a MAPT excludes them from an individual’s countable assets for Medicaid eligibility, allowing necessary care while preserving wealth.
- Irrevocable nature: A MAPT is an irrevocable trust, which means once assets are transferred, the grantor loses control over them. However, this can protect the grantor from creditors or nursing home costs.
- Look-back period: A MAPT should be set up long before someone requires Medicaid benefits, as there is a “look-back period” during which the state examines previous asset transfers to assess eligibility.
Consider seeking guidance from an experienced Louisiana elder law attorney to correctly establish and oversee this kind of trust.
Durable Power of Attorney
In Louisiana, a durable power of attorney (POA) is a legal instrument that grants someone the authority to act for a person who becomes incapacitated or mentally incompetent. Appointing a trusted individual through a POA enables them to handle financial decisions for a person with dementia, ensuring financial management continues even if that person loses capacity.
Create a Living Trust
A revocable living trust serves as a valuable resource for safeguarding individuals with Alzheimer’s or dementia. It enables them to appoint a successor trustee to oversee their assets in case of incapacitation. Furthermore, by establishing a living trust to hold assets and specifying beneficiaries after the person’s death, the process of distributing assets can occur more seamlessly, avoiding lengthy probate court procedures.
Other Important Considerations
Some other important issues to consider when making plans to protect a loved one’s assets:
Early Planning is Key
Begin arranging for asset protection promptly following a dementia diagnosis to guarantee effective execution and prevent possible legal complications.
Understand Medicaid Qualification
To avoid jeopardizing future care benefits, be aware of Louisiana’s specific rules regarding asset transfers and Medicaid eligibility.
Consult an Elder Law Attorney
Given the intricate legal complexities associated with Medicaid eligibility, it is important to seek guidance from an experienced elder law attorney in Louisiana. These legal professionals can thoroughly assess your individual circumstances or your loved ones and help you navigate the intricacies of asset protection strategies that align with both the financial goals and legal requirements. This personalized approach ensures that you can effectively safeguard assets while complying with all relevant laws and regulations, ultimately securing your interests and those of your family.
Contact Losavio & DeJean Today
To learn more about safeguarding the assets of someone with dementia, contact Losavio & DeJean today to consult with an experienced elder law attorney in Louisiana.