You spent a lifetime working to build financial security for your family. As retirement approaches, the last thing you want is to see those hard-earned assets drained by the rising cost of nursing home or assisted living care.
In Minnesota, long-term care costs can exceed $100,000 per year, and many families are shocked to learn how quickly savings can disappear. The good news is that asset protection planning can help preserve resources for a healthy spouse while still allowing access to Medicaid benefits when care is needed.
An experienced Minnesota asset protection attorney can help you plan ahead and protect your spouse’s financial future.
Why Asset Protection Planning Matters in Minnesota
Asset protection planning focuses on legally shielding assets from being consumed by long-term care expenses while positioning you to qualify for Medicaid in Minnesota.
Medicaid often becomes the primary payer for long-term care when:
Long-term care insurance is unavailable or unaffordable
Savings are not sufficient to cover years of care
One spouse requires care while the other remains at home
However, Medicaid eligibility rules are strict. Improper transfers can result in penalty periods that delay benefits. This is why early Medicaid planning—ideally three to five years in advance—is critical.
When planning is done correctly and on time, families can:
Protect the family home
Preserve income for the healthy spouse
Avoid unnecessary spend-down
Reduce financial stress during a medical crisis
Asset Protection Strategies Used in Minnesota Medicaid Planning
Every situation is unique, but the following strategies are commonly used by a Minnesota asset protection attorney to help protect assets from nursing home costs.
Asset Protection Trusts
An asset protection trust is a type of irrevocable trust designed to remove assets from your personal ownership while still allowing certain financial benefits.
Key features include:
Assets placed in the trust are no longer counted for Medicaid after five years
The trust may hold your home, savings, or investments
You cannot access the principal, but may receive income such as interest or dividends
Properly structured trusts are protected from Medicaid recovery
Because these trusts must be in place well before long-term care is needed, early planning is essential.
Income Trusts for Medicaid Eligibility
Medicaid in Minnesota has strict income limits. If your income exceeds those limits, you may still qualify through specialized trusts.
Qualified Income Trusts (Miller Trusts)
A Qualified Income Trust, commonly called a Miller Trust, holds income that exceeds Medicaid limits. This allows applicants to meet eligibility requirements while continuing to receive care.
Pooled Income Trusts
Pooled Income Trusts are available for disabled individuals. Excess income is pooled and managed by a nonprofit trustee for the benefit of the participant. These trusts can be an effective solution when income alone would otherwise disqualify Medicaid eligibility.
Your attorney can determine which option is available and appropriate under Minnesota law.
Medicaid-Compliant Annuities
If long-term care is needed sooner than expected and advance planning was not completed, a Medicaid-compliant annuity may help preserve assets for a healthy spouse.
These annuities can:
Convert countable assets into an income stream
Reduce the length of Medicaid penalty periods
Protect assets for the spouse remaining at home
Proper structuring is critical. An improperly designed annuity can result in denial of benefits.
Protecting the Healthy Spouse in Minnesota
One of the biggest concerns couples face is ensuring the community spouse (the spouse not receiving care) can maintain financial independence.
Minnesota Medicaid rules allow for:
Spousal asset allowances
Income protections
Strategic planning to preserve the marital home
A knowledgeable Minnesota Medicaid planning attorney can help ensure your spouse is not left financially vulnerable.
Get Help From a Minnesota Asset Protection Attorney
Medicaid and long-term care planning are complex—and mistakes can be costly. Whether you are planning years in advance or facing an immediate need for care, the right legal guidance can make a significant difference.
📍 Serving Minnesota families
📞 Call 763-244-2949 to schedule a consultation with a Minnesota asset protection attorney and learn how to protect your assets, qualify for Medicaid, and safeguard your spouse’s financial future.
