Irrevocable Trusts

The best way is with Long Term Care Insurance. If this is not affordable or due to poor health you cannot qualify for Long Term Care Insurance then we must look at other options. There are many options depending on what stage of life you are in. If someone is pre-planning which means they feel confident they will not be in a nursing home within the next five years this is the best case scenario. We have five years to plan and if we use an Irrevocable Trust we can protect virtually all of a person’s assets from long term care costs. If someone believes they will be in a nursing home within the next 1 to 4 years this requires a pre-crisis plan and even with planning a portion of assets may be lost to long term care costs. However the sooner a person plans the more they can usually protect. If someone is already in a nursing home or believes they will be within the next year this requires a crisis plan. Most people in this situation will spend their entire life savings within the first two to four years in a nursing home. If they plan now they may still save 40% to 60% of their assets but the average person will spend about 50% of their assets even with planning. The sooner a person begins to plan the more they can save. For most people in a nursing home if they do not plan immediately they will spend everything they have and impoverish themselves usually within a few short months. They should plan now to save what they can.

Both Revocable Living Trusts and Irrevocable Trust can protect you from probate if they are properly funded (all assets have been transferred into the trust or titled in the name of the trust). However an Irrevocable Trust can protect your assets from long term care costs such as an extended stay in a nursing home while a Revocable Living Trust will not protect your assets from long term care costs. If you have a Revocable Living Trust any asset in this trust will not be protected from Medicaid but will in fact disqualify you from Medicaid because you have “Too Many Resources”. If you are looking to protect assets from long term care costs you would choose an Irrevocable Trust rather than a Revocable Living Trust. If your only concern is avoiding Probate then a Revocable Living Trust will do.

The best way to give assets to your children is with an Irrevocable Trust. This will save you hundreds of dollars in taxes each year and your children thousands of dollars in taxes in the future.

The best way to give assets to your children is with an Irrevocable Trust. This will save you hundreds of dollars in taxes each year and your children thousands of dollars in taxes in the future.

We offer free workshops and seminars for Seniors and children concerned about their parents in Conway, Little Rock and surrounding towns and cities throughout the year. Check out our Website for dates, times and locations of our Free Workshops. If you have specific questions about your particular situation call for a Free Initial Consultation. Get Specific Answers to your Specific Questions. We also have free literature and DVD’s covering many Elder Law Topics. We will gladly mail this free information to you upon request.