One of the biggest concerns clients have when they come into our office
for estate, elder care, or Medicaid planning is that they will end up
spending all their assets on skilled nursing care and have nothing left
to leave to their children.
This is a valid concern for many people, and one of the tools that is most
often utilized to protect this from occurring is an irrevocable asset
protection trust. Here is a very simplified, nut-shell version for how it works.
The Trust is drafted and executed. Assets are transferred to the trust.
So long as the transferor does not need to apply for Medicaid within 5
years from the date of transfer, the assets transferred to the Trust will
be "protected" from being counted as a resource available when
determining the eligibility of the transferor for Medicaid. (Note: there
are many pitfalls that need to be taken into account when drafting the
trust and structuring the transfer. This strategy should not be implemented
by anyone other than a qualified elder law attorney).
Remember, the 5 year "lookback" applies from the date of the
transfer and ends on the date of the application. Thus, while an irrevocable
asset protection trust may or may not be appropriate for you, it is really
important to speak with an elder law attorney about this strategy sooner
than later so that you can receive proper advice before it is potentially too late.
If you have questions about Medicaid or asset protection trusts, feel free
to contact our Firm at 203-651-5521, or visit our website to learn more
about our Firm by clicking