Protecting Assets if You Need Long-term Care
One of the toughest decisions that a person or their family has to make is to place someone in long-term care. While that decision will never be an easy one, it happens to over 50 percent of people at some time in their lives. All your assets may be quickly wiped out by the cost of that necessary care. You may be able to avoid that from happening and still use Medicaid and Medicare to pay for your expenses. There are several ways that you may be able to protect your assets, but many of them must be done at least five years prior to you needing long-term care.
You are allowed to give most things away five years ahead of needing care. You can give them to your child who is under 21, your spouse, a child who has lived in your home for more than two years to assist you or a sibling who has an equity interest in the home and who has lived there for at least one year before your admittance to a nursing home. If you did not act soon enough, then you can still give the items away, but you will have to wait for your insurance to kick in. The length of time that you have to wait is determined by dividing the value of what you gave away by the average cost of care in the state.
An irrevocable trust may be the right solution for many people. Your assets pass into the trust that must be administered by someone else. The assets in the trust can be used to pay for your care for things that Medicare and Medicaid will not provide. You can state what happens to your assets after your death. You cannot control what is done with the assets during your lifetime in any way.
Choosing a Trust Administrator
You need to think very carefully about who you can trust to be your trust administrator. In many cases, hiring a trust administration lawyer Las Vegas may be a great choice. If you feel that no one in your family is responsible enough to handle your assets in a mature fashion, then you can protect them in this way. Having a trust administration lawyer handle your trust also cuts down on family fights.
Even if you think long-term care is a few years away, take action now. You never know when something can happen speeding up the process.