OBRA Trusts

DuPage County OBRA Trusts Attorneys

Nursing home care can quickly deplete a person's assets. Even those who have employed sound financial planning for themselves and their loved ones can find their portfolio wiped out by long term care costs within a short time. While Medicaid benefits cover nursing home care, these benefits are subject to income restrictions. Use of an OBRA trust, however, can allow individuals to set aside their own assets to potentially qualify for Medicaid benefits for nursing home care. At the law firm of Momkus McCluskey, LLC, our attorneys are familiar with OBRA trusts and help clients use this tool and others to plan for their long term care.

Planning for Nursing Home Care With OBRA Trusts

OBRA (Omnibus Budget Reconciliation Act) trusts, also called Medicaid payback trusts or self-settled special needs trusts, allow a person's assets to be set aside and not considered for Medicaid eligibility. A trustee oversees the assets in the trust, and the funds can still be used for the beneficiary's daily living expenses. This allows those who would not be otherwise eligible for Medicaid due to large amounts of non-exempt assets to use Medicaid to pay for costly nursing home fees.

When the beneficiary of the OBRA trust dies, any funds that remain in the trust are given to the state as "payback" for the Medicaid assistance received. If the government is fully reimbursed and more funds are left in the trust, the remainder transfers to the next beneficiary.

Experienced Illinois Estate Planning Attorneys

Creating an effective OBRA trust requires the assistance of an experienced and knowledgeable attorney. These trusts have specific legal requirements that must be followed. At Momkus McCluskey, LLC, our attorneys skilled in creating and managing OBRA trusts and other estate planning tools. We are one of the largest firms in DuPage County, with offices in Lisle, IL and downtown Chicago.

To schedule a consultation with an experienced estate planning attorney skilled in working with OBRA trusts, contact Momkus McCluskey, LLC.