Protecting Assets with Trusts

Learn How Trusts Can Protect Your Assets

Trusts are a commonly used tool in Medicaid planning. They are used to protect your home, or your hard-earned life savings, or other property.

The way that this works is that the Trust created for protecting assets (for Medicaid purposes or otherwise) is a separate entity from the person who created it. The assets that are placed in the Trust no longer belong to the person who created the trust.

The result, subject of course to the current Medicaid requirements is that the assets in the Trust may not have to be counted when determining if the creator of the Trust (or the beneficiary of the Trust in the case of a 3 rd party trust) is eligible for needs-based government benefits such as Medicaid.

Which type of trust is right for me?

There are many different types of Trusts that can be utilized, and whether one or another is appropriate will be entirely dependent on your circumstances and the prevailing law, rules and regulations applicable to Medicaid.

It is important to note that just having a Trust may not be sufficient. A Trust that is created and that exists during your lifetime may need to be properly funded within the context of the Medicaid transfer rules (e.g. the "look back" period) to be of any use. There may be choices as to how the Trust will be funded.

Trusts should be customized to your unique situation, and the pros and cons of different strategies and tools should be reviewed with a qualified Medicaid planning, elder law, or estate planning attorney in Fairfield County. Contact Massih Law, LLC for the counsel that you need! We proudly serve clients in both Fairfield County and New Haven County, including Stamford, Trumbull and Westport.