October 1, 2020 | Asset Preservation Planning
When is an Asset Protection Trust Right for Me?
As Elder Law Attorneys, we are often asked this question. The simple answer follows.
If you have something you don’t want to lose to the nursing home, an Asset Protection Trust is right for you. Just make sure you set it up and fund it at least five years and one day before you need long-term care. Unfortunately, we don’t have a crystal ball to tell us when we will need help with our care.
Practically speaking, if you have assets you want to protect in the event you need long-term care, an Asset Protection Trust is right for you. Many of clients want to protect their home. Unlike other trusts, an Asset Protection Trust is time sensitive. Assets placed into the Asset Protection Trust must be in trust for five years before it is 100 percent protected from your long-term care costs. Every week, people come in to set up these trusts and say, “I should have done this five years ago.”
You don’t need to have a million dollars to benefit from a trust. You just need to have ‘something’ that you want to protect from the costs of long-term care. If you have that ‘something,’ the time to plan is now.