July 07, 2021
Castle Trust vs Veterans Asset Protection Trust
Castle Trust vs Veterans Asset Protection Trust
Both of these are concerned about protection from lawsuits, creditors, and long-term care costs.
With the Castle Trust, the big thing we’re protecting from is Medicaid and the devastating cost of nursing home care which could easily run $8k-$12k a month.
To qualify for Veterans Asset Protection Trust you have to be a veteran and meet certain requirements, but now you could get qualified for a VA benefit. A VA benefit could be anywhere from roughly around $1,000 to $2,000 if you meet certain requirements.
There are some technical legal differences between the Castle Trust and Veterans Asset Protection Trust. The big thing is Castle Trust is a lot more flexible. You can change beneficiary you could serve trustee. The Veterans Asset Protection Trust is a lot more restricted. You could not be the trustee and it is taxed differently.
If you are a veteran or a surviving spouse, it might be something we may consider depending on the situation to help you qualify for the VA benefit.
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Episode Transcript
Welcome to Berry’s Bites, please join our host attorney and financial advisor Chris Berry.
Castle Trust versus a Veterans Asset Protection Trust
Both of these are concerned about lawsuits creditors the big one is really protection from long-term care costs with the Castle Trust the big thing we’re protecting from is Medicaid and the devastating cost of nursing home care which could easily run eight to twelve thousand dollars per month. The Veterans Asset Protection Trust also builds in that lawsuit protection but again really the big thing is protection from long-term care costs.
To qualify for this you have to be a veteran and meet certain requirements but now what we could do is we could get you qualified for a VA benefit and that VA benefit could be anywhere from roughly a thousand, two thousand dollars a month if you meet certain requirements. There are some technical legal differences between the Veteran’s Asset protection trust and the Castle Trust. The big thing is the Castle Trust it’s a lot more flexible you can change beneficiaries you can serve as a trustee you pay taxes the way you normally do.
It doesn’t uncap your property taxes or anything like that of a Veteran’s Asset Protection Trust just because the VA benefit works differently than Medicaid. It’s a lot more restrictive if you were to set up a Veterans Asset Protection Trust you could not be the trustee, it’s even taxed differently we do a lot more of our asset protection trusts Castle Trust than we do Veterans Asset Protection Trusts. The big thing would be if you are a veteran or surviving spouse it might be something we may consider depending on the situation to help you get qualified for the VA benefit but yeah there’s tax differences castle trust is taxed much more favorably than a veterans asset protection trust.