By Attorney Nathan Simpson
This is one of the most common questions we hear from new clients. Despite what many believe, the answer is almost always the following: No. The trusts that most attorneys prepare are Revocable Living Trusts. These can be powerful documents to avoid probate, guardianships, and to save on death taxes. However, they are not Nursing Home-protected trusts. In fact, if used incorrectly, these trusts can make it harder to qualify for Nursing Home benefits, and can be result in a much larger spenddown than would otherwise be required.
Only a highly specialized trust can provide Nursing Home protection. There are many types of these trusts for different assets, but the best ones will not only provide Nursing Home protection, but will allow for flexibility in the future and for preserving important tax advantages.
A Revocable Living Trust can be a valuable tool for many people, but it is not a one size fits all solution. What is needed is a Life Plan that incorporates tax, nursing home, and probate planning to create a comprehensive solution.
If you would like to see if your trust is Nursing Home protected, and beginning developing a Life Plan for you and your family, please contact the elder law attorneys at Cooper, Adel & Associates today.