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Irrevocable Vault Trust for Medicaid Planning in Wisconsin: Protect Your Assets & Qualify

As we age, the cost of long-term care can become overwhelming. In Wisconsin, Medicaid can help cover these expenses, but eligibility rules are strict. One of the most effective strategies for Medicaid planning in Wisconsin is a properly structured irrevocable trust, such as The Estate Planning Group’s Irrevocable Vault Trust. This type of trust can help protect assets while meeting Medicaid requirements.

What is an Irrevocable Trust?

Unlike a revocable trust, which can be modified or revoked by the grantor, an irrevocable trust generally cannot be changed once established. When you transfer assets into an irrevocable trust:

• You no longer own the assets directly.
• A trustee manages the assets according to the trust’s terms.
• Your access and control are strictly limited.

This separation of ownership is what allows assets to be exempt from Medicaid eligibility calculations, making irrevocable trusts a key tool in long-term care planning.

The Irrevocable Vault Trust: A Wisconsin Medicaid Planning Solution

The Irrevocable Vault Trust, offered by The Estate Planning Group, is designed specifically for Medicaid planning in Wisconsin. By transferring assets into this trust, those assets are generally excluded from the Medicaid asset test, helping applicants qualify for benefits.

However, it’s important to remember the five-year lookback period. Any asset transfers made within five years of a Medicaid application may be subject to divestment penalties, potentially delaying benefits. Proper planning and timing are essential to maximize the trust’s protection.

Choosing the Right Trustee

Selecting a trustworthy and experienced trustee is a critical step in using an irrevocable trust for Medicaid planning. The trustee is responsible for:

• Managing trust assets according to the terms of the trust
• Providing for the grantor’s needs while they are alive
• Distributing assets to beneficiaries after the grantor’s passing

A reliable trustee ensures that your Medicaid planning goals and legacy planning objectives are fully met.

Maintaining Some Control with the Irrevocable Vault Trust

While irrevocable trusts limit direct control, the Irrevocable Vault Trust allows certain rights for the grantor, such as:

• Receiving income from the trust
• Adjusting specific trust provisions under certain conditions

Working with an experienced Life & Legacy Planning attorney ensures that your trust is tailored to your long-term care planning needs and your family’s financial legacy goals.

Key Benefits of an Irrevocable Vault Trust in Wisconsin

A properly structured Irrevocable Vault Trust can:

1. Protect assets from Medicaid eligibility calculations
2. Preserve income or legacy for beneficiaries
3. Provide peace of mind for long-term care planning
4. Ensure compliance with Wisconsin Medicaid rules, including the five-year lookback

Plan Wisely and Protect Your Legacy

An Irrevocable Vault Trust is a powerful tool for Medicaid planning in Wisconsin. By understanding the basics of irrevocable trusts, selecting the right trustee, and planning around the five-year lookback period, you can:

• Qualify for Medicaid coverage when needed
• Protect assets for your family
• Preserve your legacy for future generations

At The Estate Planning Group, our experienced Life & Legacy Planning attorneys guide Wisconsin families through the process of creating Irrevocable Vault Trusts that meet their long-term care and estate planning needs.

Schedule a Consultation with a Wisconsin Medicaid Planning Attorney

Don’t wait until long-term care needs arise. Protect your assets and plan for your future today. Contact The Estate Planning Group to learn how an Irrevocable Vault Trust can help you qualify for Medicaid while safeguarding your family’s legacy.