Connecticut Elder Law Attorney
Asset Protection - Trusts
Allaire Elder Law
Trusts For Asset Protection
Creating a secure plan with the assistance of a trust attorney for your family’s future can bring you the peace of mind that you crave. Knowing your family home and other assets are protected gives you a sense of security in your later years. You and your spouse can still enjoy your property for many years to come without worrying about what will happen in the future. When the time comes, your home can be given to your family without hassle.
Trust Attorney in Connecticut
At Allaire Elder Law, our trust attorneys provide experienced legal counsel for senior citizens interested in creating trusts. We can assist you in facing your concerns about long-term health care, whether it is in a nursing home or in your family home. We are skilled and experienced in the creation of trusts, which can help you to qualify for Medicaid benefits without decreasing your quality of life or standard of living.
Our qualified Trust Attorneys can assist you with any of the following types of trusts:
Living TrustsA living trust offers the grantor the ability to transfer property to a trustee while they are still living. After the grantor’s death, the trustee can have the property transferred without having to deal with the expense and hassle associated with probate court.
Irrevocable TrustsAn Irrevocable trust is a permanent entity designed specifically to protect your assets during lifetime, and to avoid the hassle of probate. An individual must transfer their assets into the trust, which becomes the owner, and a Trustee manages that trust. The person making the trust (“grantor”) can also be a Trustee. This transfer can protect your assets from being counted towards the $1,600 Medicaid eligibility limit. After the 5 year look back period has passed a Medicaid application cannot be penalized for this transfer, either. The Deficit Reduction Act, created by Congress in February 2006, changed the application rules for Medicaid. This act established what is known as a look-back period. This waiting period allows Medicaid to examine your finances over the five years prior to the application. Since the creation of this act, people who hope to qualify for Medicaid have to think five years ahead. Those who suffer from a chronic illness have to plan and transfer their assets at least five years before they need Medicaid in order to qualify without penalty. Last minute crisis planning options are available, particularly when there is a spouse, or a disabled child.
Pooled Asset TrustsA pooled trust is a tool often used by senior citizens or those with long term disabilities to qualify for public benefits, such as Medicaid, without having to deplete assets totally. Pooled trusts are only available in some states and can be very difficult to understand.
Revocable TrustsRevocable trusts are different than irrevocable trusts because they can be changed or cancelled by the grantor. These are appropriate for individuals seeking to protect assets for those who should not inherit outright for reasons of age, debt, or other considerations, as well as to minimize the probate process. However, these trust will not protect assets if the grantor needs long term care. Medicaid eligibility rules would require that all revocable trust assets be spent before eligibility is possible. The Deficit Reduction Act, created by Congress in February 2006, made changes to the way a senior qualifies for Medicaid. This act established what is known as a look-back period. This waiting period allows Medicaid to examine your finances over the past five years. Since the creation of this act, people who hope to qualify for Medicaid have to think five years ahead. Seniors who suffer from a chronic illness have to plan and transfer their assets at least five years before they need Medicaid in order to qualify.
Special Needs TrustsA trust for a disabled child or adult protects assets while maximizing benefits eligibility. In many cases, when a person receives government benefits, such as Social Security or Medicaid, gifts or inheritances that they receive can reduce or even eliminate any eligibility for these benefits.
Contact Our Trust Attorneys
Since there are specific rules to creating special needs trusts in Connecticut, you need the assistance of an attorney that specializes in these delicate issues. If the disabled beneficiary directly receives proceeds from an inheritance or gifts, he or she may lose all eligibility for government benefits. Any proceeds or assets need to be placed directly into a special needs trust in Connecticut to be properly utilized.
To find out more about how tools like wills and trusts can benefit you, contact our elder law attorneys today.
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