How to Protect Your Assets From Long-term Care Costs with an Asset Protection Trust

Long-term care costs can easily exceed $11,000 per month in a Nursing Home in Michigan, so many people are interested in what they can do to shield their assets from nursing home or Medicaid spend down.  One of the most straightforward ways to protect assets from law suits and long-term care costs in Michigan is with an Asset Protection Trust.

Asset Protection Trusts are irrevocable trusts, but they are not like the old irrevocable trusts used to protect against estate tax costs.  No, the modern irrevocable asset protection trust is not protecting against estate taxes, but instead is protecting you (or your loved ones) from long-term care costs and/or law suits.

Asset Protection Trusts Protect Against Long-term Care Costs

Let’s dispel the myth that asset protection trust are only for people looking to avoid debts.  That’s not the case at all, most of the people that are using the modern asset protection trust are just looking to protect themselves from the devastating cost of long-term care costs.

Another myth is that if you’re on Medicaid you’re in some run down nursing home.  That is not at all the case.  There are some nursing homes that say you must private pay for a month or two, but then you can switch over to Medicaid and receive the same level of care as everyone else in the nursing home, but it’s picked up by Medicaid instead of having to spend down all your hard earned assets.

The average cost of a nursing home in Michigan can exceed over $11,000 per month, with that how is the average family going to pay that cost?  You can either spend down your assets until you qualify for Medicaid or you can move your assets into an asset protection and then have Medicaid pay the base level of care with the assets in the trust either paying for additional services to improve your quality life.  Then if you’re a married couple not only can you protect assets for the spouse that needs care, but you can ensure that the healthy spouse isn’t complelty impovershed paying for the care of the sick spouse.

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Michigan Asset Protection Trusts Are Flexible

Many people think because the asset protection trust is an irrevocable trust that it is unable to be changed.  That is not at all true.  With the modern asset protection trust, you can change trustees, change beneficiaries, receive all the income from the trust and serve as trustee of the trust.  You are in charge.  You can even get all the assets out of the trust at anytime through a process.

Not all Trusts Are Created Equal, Work with a Certified Elder Law Attorney

Understand, not all irrevocable trusts and asset protection trusts are created equaly.  There are many types of trusts and varying degrees of knowledge when it comes to attornies.  It is important that you work with knowledgable attorney when it comes to preparing an asset protection trust.  If you don’t you may have unnecessary restrictions or the asset protection trust may blow up in your face.

That is why you should work with a certified elder law attorney (CELA), which is the gold standard in estate planning and elder law.  Currently there are 19 in Michigan and over 400 in the nation.  This is specialized knowledge that your typical estate planning or elder law attorney may not have.

Learn More About Asset Protection Trust and How to Protect Against Long-term Care Costs

Do you think that an asset procetion trust would help you or your family?  Are you a financial professional who wants to learn how the modern asset protection trust might be a solution for your clients?  Then please join us for awebinar where we go over the pros, cons and inner workings of the modern asset protection trust.

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