Why an Irrevocable Trust is a Great Way to Save Money and Fund Long-Term Nursing Home Care
Byline: Chad Nelson, Esq.
Estimated read time: 3-4 mins
When long-term nursing home care is needed, a person generally has two options to cover the cost: 1). pay privately, using one’s own financial resources, or 2). apply for Medicaid once their resources become insufficient.
Medicaid coverage for long-term nursing home care is only available for those with no more than a few thousand dollars in “countable” resources. Thus, individuals usually must deplete the bulk of their savings and other assets before Medicaid will fund their nursing home care.
An irrevocable, Medicaid-asset protection trust can be an effective tool to limit one’s financial exposure to the high cost of long-term care. By creating such a trust well enough in advance of requiring long-term care, and funding it properly, individuals can preserve valuable assets ─ like real estate, investments, and bank accounts ─ and qualify for Medicaid much sooner.
How It Works
As you can imagine, there are several conditions that properly-structured irrevocable trusts must meet in order to reap the benefits:
It Pays to Plan Ahead
Incorporating a well-written, fully-funded, irrevocable Medicaid asset protection trust into your overall estate plan can result in enormous financial savings for you and your loved ones. The key is to assess your likelihood of needing long-term nursing home care and putting a plan into motion.
To learn more about irrevocable trusts, Medicaid asset-protection strategies, or determine whether you might benefit from a trust, contact our office for a complimentary estate planning consultation.