Benefits of an Irrevocable Trust for Long-Term Care Planning
There is a lot of misinformation out there concerning irrevocable trusts. Many believe that these trusts have no place in their estate plan. However, irrevocable trusts can be highly beneficial in many cases. To understand why, you must understand how an irrevocable trust works in comparison to a revocable trust.
Irrevocable trusts move assets out of your estate and into the trust. The trust essentially becomes the owner of the assets. You, as the Grantor, are entitled to income generated by the trust. Instead, the income is taxed as opposed to the assets.
Beyond this, irrevocable trusts are powerful tools for long-term care planning. In this article, the Virginia Beach long-term care planning attorneys at The Law Office of Angela N. Manz will discuss the benefits of irrevocable trusts for long-term care planning.
Irrevocable trusts can achieve more than revocable trusts
Irrevocable trusts are designed to be difficult to change by the Grantor (creator) or another individual. The word “irrevocable” means “unchangeable.” Irrevocable trusts are designed to restrict access to the Grantor’s assets and, in some cases, income. When you place assets in an irrevocable trust, you can shield them from creditors, the probate process, and create a legacy for your heirs. When it comes to long-term care planning, an irrevocable trust can protect your assets from being counted as available funds to pay for the cost of care related to a skilled nursing facility. This will allow you to be eligible for government benefits and entitlements such as Medicaid.
When setting up an irrevocable trust for long-term care planning, it is important to find an attorney who specializes in catering to those who are setting up a long-term care plan. When trusts such as these are created specifically to obtain eligibility for Medicaid, you need a qualified expert who will ensure your assets are not wasted and only spent under allowed circumstances. Using a trust for Medicaid planning is complicated. The slightest inaccuracy can cause you to lose your eligibility. The trustees and elder law attorneys at The Law Office of Angela N. Manz will work together to ensure the trust meets your needs and ensures your goals.
You can plan early for your long-term care needs
When it comes to long-term care planning, access to public benefits such as Medicaid won’t happen immediately. The irrevocable trust agreement needs to be in place and fully funded for at least 60 months prior to needing long-term care. If the five-year waiting period has not elapsed, the assets held by the trust will be counted for eligibility purposes. That’s why it’s a good idea to begin the process of long-term care planning early.
Talk to a Virginia Beach Long-Term Care Planning Attorney Today
The Law Office of Angela N. Manz can help you or your loved one establish a long-term care plan using irrevocable living trusts. There are several benefits to doing so, and qualifying for government benefits is just one of them. Call our Virginia Beach estate planning attorneys today to schedule an appointment, and we can begin discussing your goals right away.
