By Paul Lorrah
How do I do that?
An Asset Protection trust will protect your home, savings and investments from having to be spent on the cost of long term care. When properly drafted you can transfer ownership of the assets you wish to protect to the Trust. You can choose who manages the assets in the trust as well as who receives the assets at your passing.
What is a Trust?
A trust is a document which creates a legal vehicle which can own any item you wish and holds that item for future beneficiaries. You can transfer ownership of a home, personal property cash, investments, etc. These items would be owned by the Trust and when you passed away, the beneficiaries that you named would receive these items in whichever way you choose.
If I transfer my home to a trust, do I have to leave?
Absolutely not. You can transfer a home, car, vacation property, etc. anything you want AND still retain full use of it just as you did prior to the transfer. You won't give up any rights at all.
I have a Will, isn't it the same?
No, a Will is just suggestions of how you would like your loved ones to receive items you own. However, if you sell or give away or spend the items mentioned in your Will they won't be there when you pass away. If you state in your Will that you wish to pass your home to your daughter when you die that's great but if you had to sell your home to pay nursing home costs then you can't leave it to your daughter, it's not there.
Unlike a Will, the items in the Trust are protected which means you don't have to sell them to pay for nursing home costs. you can apply for Medicaid benefits. 78% of everyone receiving nursing home care relies on Medicaid to make those payments.
What is Medicaid?
Medicaid is a federal and state funded program that will pay 100% of your nursing home costs if approved. Approval is based on your income and assets. If you have too many assets you won't be approved until you spend them on your care.
That's where the Trust comes in, if you transfer a certain portion of your assets to an asset protection trust, they won't count when you apply for Medicaid benefits.
In the event you have to enter a nursing home, assisted living facility or even need at home long term care, you can apply and become approved without having to spend your savings or sell your home.
Please note that the above information is a general overview - Asset Protection for Medicaid and long term care is extremely detailed and must be done precisely or you'll have terrible results.
It takes an in depth analysis of your income, assets and expenses to do properly. What you leave out of the Trust is just as important as wheat you transfer to the Trust.
No one wants to go to a nursing home, no one wants think that they'll need long term care but the harsh reality is - it's very likely you will become sick enough to need a nursing home.
71% of all Americans over 65 will require long term care services during their lifetime.
Contact us today to learn how to protect your home and savings from the cost of long term care.
855.471.6771 - firstname.lastname@example.org