There are a LOT of different kinds of trusts; the trust or trusts your attorney recommends for you will completely depend on your situation and personal goals. Your goals may include:
- Estate tax reduction or elimination.
- Maintaining harmony in the family when the kids own the cottage together someday.
- Protecting assets from lawsuits.
- Protecting your child’s inheritance from creditors or divorce.
- Protecting against remarriage after death of the first spouse.
The list goes on.
For many people, a major risk to their wealth is running out of money due to long-term care and nursing home costs. This is where the Medicaid Trust may be right for you. But beware, these trusts are NOT for everyone and your attorney should educate you on the advantages and disadvantages of using a Medicaid Trust for asset protection. A qualified elder law attorney will know EXACTLY what questions to ask in order to assist you in determining the best type of trust for you. The quality of our recommendations is directly correlated with the quality of our questions and our understanding of your situation. So…is a Medicaid Trust recommended for you? Some things to consider are:
- When will I likely need some sort of long term care?
- What “type” of assets make up my net worth – retirement accounts, real estate, cash, businesses?
- Am I in a first marriage or part of a blended family?
- Do I have a prenuptial agreement?
- Do I REALLY care if I run out of money? (Sometimes the answer is “No!”)
- And many more important questions.
In short, the only way to know if a Medicaid Trust is right for you is to talk to a highly qualified and trustworthy elder law attorney. Trusts can be powerful legal “tools” when used correctly. A qualified Michigan elder law attorney can help you decide what type of trust is the most appropriate “tool” for you.
At Alles Law, we do this type of work every day and can give you clarity around these important issues. Call us at 616-365-5055 or email info@alles law to schedule a complimentary consultation with an elder law attorney at our office today.