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Adopting several critical steps to better financial management will enable greater asset protection and prevent them from being compromised by spiraling nursing home costs, revealed Elder Law attorney Christopher T. Casey.
For more information please visit https://www.caseylundreganlaw.com
Christopher T. Casey, a partner of the Estate Planning and Elder Law firm Casey & Lundregan, P.C., in Salem, MA, said that many of his clients are seeking help regarding the complexities of shielding their finances, and he wants to point out the proactive measures they can adopt to protect their assets.
One option is to consider giving monetary gifts to loved ones before a person cannot independently do so due to sickness or mental health failings. He said: “Giving financial gifts ahead of when you actively require nursing home care means the money is protected from creditors who may emerge seeking collection upon your death.’’
“In the case of Medicaid, assets that you transfer within five years before entering a care facility might be subject to seizure after your death.”
He added that transferring funds before you fall ill ensures family members can legally keep the gifts they receive.
Another option is to transfer a portion of your monthly income into your spouse’s name. If their income is less than the amount your state exempts, you can allocate a part of your income to your spouse to bridge the gap. That transferred income is regarded as exempt.
Attorney Casey advised that annuities and trusts are other avenues that can be used individually or collectively to protect finances. He added: “Some states don’t count periodic payouts from annuities when determining Medicaid eligibility. So, you can transfer assets into an annuity and qualify for Medicaid-covered nursing home care without spending down your assets.”
Suppose a state considers annuity payouts when determining Medicaid eligibility; then people can still safely transfer assets into an annuity but cannot use Medicaid services for a specific period following the transfer.
He added: “Trusts are another way to financial protection. These can include utilizing a properly-drafted irrevocable trust exempt from nursing home costs.” Another option is to put both spouses’ assets into a “pour-over” Trust, which allows you access to the money and protects them from seizure.
Creating a testamentary trust via a will sees a portion of funds from the original trust “pour over” into the deceased spouse’s estate. It protects that money from being seized to pay nursing home expenses, therefore providing financial protection for both spouses regardless of who dies first.
An attorney can also draft a “Life Estate Deed” for a person’s real estate, asserting their right to continue living at home until death. After death, ownership of the property is automatically transferred to a loved one, preventing the state from claiming it or placing a lien on it.
Alternatively, establishing a life estate and transferring real estate will not attract a penalty if you enter a nursing home, provided the transfer occurred five years before your illness.
Attorney Casey concluded: “This type of planning is very complicated, so if you consider such management plans, always seek advice from a professional Elder Law Attorney before you act.”
Source: http://RecommendedExperts.biz
Contact Info:
Name: Christopher T. Casey
Email: Send Email
Organization: Casey & Lundregan, P.C.
Address: 71 Washington Street, Salem, MA 01970
Phone: 978-741-3888
Website: https://www.caseylundreganlaw.com/
Release ID: 89077225
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