June 23, 2018
Asset Protection Irrevocable Trust in Michigan
If you are looking for an Asset Protection Irrevocable Trust in Michigan then one of your best bets would be to look towards a Castle Trust which is an irrevocable trust that offers much of the flexibility of a revocable living trust without all of the requirements of a Domestic Asset Protection Trust.
The Castle Trust was created to avoid probate, control distribution upon death and then protect against lawsuits and long-term care costs. One of the best features of the Castle Trust is that you can change beneficiaries, change trustees, manage the trust, yet it still starts the Medicaid or Nursing Home five year look back clock.
So, it offers much of the flexibility of your typical revocable trust, but protects against the devastating $8,000-$12,000 per month nursing home bill.
There are a lot of irrevocable asset protection trusts out there that have a variety of different features. If you were to google irrevocable asset protection trust, you are going to find a whole slew of different types of trusts, but you’d be hard pressed to find a trust that offers the flexibility and asset protection provisions of the trademarked Castle Trust.
Principles of the Castle Trust | Modern Irrevocable Asset Protection Trust
Irrevocable Asset Protection Trusts have been around for decades. In the past, they were geared just towards lawsuit or maybe estate tax protection. But these days with the estate tax exemption over $11million, most people are not concerned about estate taxes, but instead are concerned about long-term care costs. This is where the Castle Trust comes in.
The Castle Trust is based on principles established back in the 90’s, of establishing asset protection trusts that protect not against estate taxes, but instead protect against the devastating cost of long-term care. These concepts are not new, so many elder law attorneys were doing these types of trusts that in 2006, the Feds changed the look back from 3 years to 5 years. So, they know what we are doing, but they do not look unfavorably to what we are doing, because they grandfathered in any prior planning.
So, if you are looking for an irrevocable asset protection trust, you might want to consider the Castle Trust.