As a part of your long-term care plan, you may want to consider putting your home into a trust. If you intend to stay in your home and live there as you age, putting it into a trust could be a good option that will allow you to protect the asset and your right to remain.
As you age, you may decide that staying in your home is the right option. You might also want to take steps to help you qualify for Medicaid and to limit the risk of losing your home to collections or a spend-down period if you are in debt or need to qualify for medical benefits.
How does a trust protect your home?
A trust is a great tool to use because it protects your home. It does this by taking your home out of your name and placing it into the care of a trustee. You can use this process to set aside the home as an asset that you can pass on to beneficiaries later, too, keeping your property out of probate in the future.
To get the most protection out of a trust, you should look into using an irrevocable trust as you build your estate plan. With this trust, the asset no longer belongs to you, but you can make arrangements that allow you to stay in the home and pass on the property immediately upon your death.
Will a trust help with the Medicaid look-back period?
Yes, it can. Medicaid has a look-back period where it looks at the money and assets you had and any major transactions. If you want to protect your property and qualify for Medicaid, moving it into a trust many years before you need Medicaid can help.
Your home can be protected if you look into using trusts. There are several different forms, and irrevocable trusts are just one possible option. It’s a good idea to look into estate planning with an eye on Medicaid and long-term care planning, so you can build a plan that will work for you now and protect you and your beneficiaries in the future.