Trust to protect estate (move, federal, states, separate)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
In a couple of weeks I will be meeting with an estate attorney to discuss setting up a trust to protect my "estate" should I need to go into an assisted living arrangement. (I'm 63 and perfectly healthy.) The purpose is to have medicare pay for my assisted living, and I wouldn't have to deplete all my assets first to qualify. An investor I work with suggested I do this. She said the asset protection takes effect in five years from the date the trust is completed. The estate attorney charges about $2,000 to set up the trust. The initial consultation is free. Does anyone know anything about this? I once heard there's insurance you can purchase to protect your assets, but that's not what this is.
You need to define exactly what you mean by "assisted living" - in most definitions of the term, Medicare doesn't pay for any of it. What Medicare MAY pay for is actual medical care (nursing staff taking care of medical issues) in an assisted living facility.
My 91yo MIL had an RN who came in to her assisted living apartment twice a week to bandage a non-healing wound on her foot. Medicare paid all of that bill, but nothing toward the $4,500 a month rent at the assisted living.
My FIL (non-ambulatory) was in a full nursing care facility and Medicare paid PART of that bill.
Maybe I misunderstood what my banker was saying. But I heard you can be in an assisted living facility, paying say $10,000 a month from your life savings. In the next bed is someone who has no savings and is getting the same care at government expense. Maybe it's Medicaid that pays for that person's care. But I thought my banker said Medicare. So I wonder now what she was talking about with the trust.
You need to define exactly what you mean by "assisted living" - in most definitions of the term, Medicare doesn't pay for any of it. What Medicare MAY pay for is actual medical care (nursing staff taking care of medical issues) in an assisted living facility.
This ^^^^. Plus there's never ANY asset test for Medicare.
OP, you're probably thinking of Medicaid and an SNF (skilled nursing facility, or what is commonly called a nursing home). Just be sure you know what you have your terminology and expectations correct before you pay that $$ to a lawyer.
Maybe I misunderstood what my banker was saying. But I heard you can be in an assisted living facility, paying say $10,000 a month from your life savings. In the next bed is someone who has no savings and is getting the same care at government expense. Maybe it's Medicaid that pays for that person's care. But I thought my banker said Medicare. So I wonder now what she was talking about with the trust.
Attorneys often charge thousands or tens of thousands of dollars in setting up trusts. Make sure you thoroughly understand the details, what you can do and not do with your assets and what if any benefits you can expect. Also consider that nursing homes often provide private pay services and may retain that person when they expend their funds and transfer to Medicaid. That does not mean the facility will take a new Medicaid patient. Some nursing homes are just plain horrible and you want to make sure you have options even though your assets are in trust. Also be aware that the Federal government has tightened rules and continues to tighten rules so that they do not pay for services that the patient could afford.
See what your attorney plans. It's a wise move for Medicaid planning. If you don't plan early enough, an alternative measure would be to convert assets to annuities, but those are expensive. The idea is to shield the assets from the 5 year lookback period IF you had to go to a nursing home, giving you the best chance to preserve assets in your estate for beneficiaries.
In a couple of weeks I will be meeting with an estate attorney to discuss setting up a trust to protect my "estate" should I need to go into an assisted living arrangement. (I'm 63 and perfectly healthy.) The purpose is to have medicare pay for my assisted living, and I wouldn't have to deplete all my assets first to qualify. An investor I work with suggested I do this. She said the asset protection takes effect in five years from the date the trust is completed. The estate attorney charges about $2,000 to set up the trust. The initial consultation is free. Does anyone know anything about this? I once heard there's insurance you can purchase to protect your assets, but that's not what this is.
I would skip this and pay my own bills. No interest in helping you pay yours.
Having said that I would be very carefull. My guess is you will be placing all your assets in a non revocable trust and will have no ownership rights to the assets. A trustee will have to be named and the trustee will manage the assets per the terms of the trust. I do not know if you can be the trustee. I would think not. How much will the trustee charge? Be sure to have a method of changing trustees if you do not think they are doing a good job. Income in the trust will be subject to state and federal taxes separate from your return.
If you think you will go through with this I would get a second opinion from another attorney.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
