Protecting Your Money from Nursing Home Costs
No, this article isn’t asking if you’re ready to live in a nursing or want to. Rather, the focus is that by using trust law and some other techniques, you can find some ways to safeguard what you’ve obtained. Being in a nursing home may still cost you. That said, here are a handful of precautionary steps that you and your relations should consider taking.
Don’t be deceived. Living in a nursing home doesn’t automatically equal the death of your finances. Perusing Medicaid for your coverage is a hypothetical possibility.
Estate planning is, for the most part, about playing your assets right and knowing how to implement trusts and wills to your advantage. There’s far more to this process than simply throwing all your assets inside a will and hoping everyone inherits something worthwhile.
Budget for Tomorrow | Minnesota Estate Planning
Money is the main factor here. Though you may qualify for Medicaid to cover the cost of living at a nursing home, it’s still wise to properly budget. It would also be wise to understand if and for how long Medicaid will cover you.
If you do anything, do your research on what living at a nursing home all involves for you under and without Medicaid. Protect your assets by finding out what this is going to cost.
Though they may not show it, your loved ones may be highly concerned about your wellbeing. Kids, spouses, and close family members might all be worried about what’s going to happen next. Living your fullest life may mean that you live out the rest of your days inside of a nursing home.
While that may not sound ideal, it would be best for you and your family to come to terms with reality. Be honest and open about what options are available. By budgeting, everyone can get a better idea of what possibilities remain.
The Generosity Route | MN Wills and Trusts
Most grandparents probably know the joys that arise from spoiling their grandkids. And that same feeling may come from being generous towards others. So, if you’re looking for a way to make sure that your assets are passed down, look into all of the ways that you can gift the assets that you want someone to have.
Gift is the key word. Once you’re sure that you won’t need something, whether now or when you’re in a nursing home, gifting may be the best route to take.
There are lots of physical objects that can be gifted without much concern. The household items that are strewn across your home are just one such example. Your house itself might be able to be gifted to someone else.
You must be aware of tax ramifications, however, and how that might affect Medicaid for you, and should pay off your debts before you gift a single penny. Paying off a loved one’s debt during probate is no fun.
Castle Trust
Trusts are more than for providing funds for your pets. A castle trust can be used to add extra protection to your present assets, keeping them safe for younger generations. As a word of caution, castle trusts fall into the irrevocable trust category, making it so that any assets wrapped in these trusts are basically untouchable to you. There’s very little chance that you can change your mind once they’re sealed inside any irrevocable trust.
Creditors and lawsuits hate castle trusts in particular, as the assets inside these trusts can’t be used to satisfy their demands. Collecting on these trusts whether because of a car accident or because funds should be taken from you is not an option. This level of security extends to your children who inherit the trust. A castle trust could also be set up to help supplement your income and enable you to receive Medicaid if properly set up.
Five Year Look Back Period
If you plan on making any serious financial decisions and getting Medicaid, five years is the time frame you need to have in mind. Of course, give yourself extra time to budget. Those who control Medicaid are well aware that you can deplete yourself of assets by simply giving things away. That said, they’re probably going to research what kind of gifts you gave. Big gifts are the ones they’re looking for. Houses, like the ones mentioned previously, are one such example.
You must be wise when you pass on such assets. Fully realize the ramification of any gifts you give. Otherwise, you may incur a penalty from Medicaid. Sure, you may want your offspring to get the home, and they may have family that can better utilize it. Nevertheless, purpose isn’t the question here. Money is the major concern. Making yourself poorer than you were may result in bad news for you. Don’t throw away large assets for your own sake unless you’re sure nothing negative will come of it.
Minnesota Estate Planning Lawyers
Working on your estate planning by yourself is rarely recommended. Getting more people involved is a wise choice. Those who will be there to walk you through your days in the nursing home should be aware of what you’re doing. A trust lawyer should be amongst the first that you contact, provided that you want that extra level of assurance. What’s to be done about your assets once you’re gone is a huge question for your family to answer. Seeking out legal advice may allow you to better calm their fears.
For clarity and assistance with this process, you should consult the law firm of Flanders Law Firm LLC at 612-424-0398.
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