A common question from many Massachusetts homeowners is does my revocable Trust protect my home from potential nursing home and long-term care expenses? While a revocable Trust offers many advantages, protecting your home from nursing home expenses is not one of them. In this article, we will discuss the definition of a revocable Trust, examples of how it can be used to protect assets, and alternative options to safeguard your home from potential nursing home expenses.
What is a Revocable Trust?
A revocable Trust, also known as a living Trust, is a legal entity created by a person during their lifetime. The Trust is managed by a Trustee, who is responsible for managing the Trust assets and distributing them according to the Trustor’s instructions. The Trustor retains the ability to modify or revoke the Trust at any time during their lifetime.
Advantages of a Revocable Trust
A revocable Trust is a popular estate planning tool because it offers several benefits, including avoiding probate, providing for incapacity planning, and maintaining privacy. However, one of the primary benefits of a revocable Trust is not asset protection.
Alternative Options for Protecting Your Home
If you are concerned about protecting your home from potential nursing home expenses, there are other estate planning tools that may be more effective. One option is an irrevocable Trust. An irrevocable Trust is a type of Trust that cannot be modified or revoked by the Trustor once it has been created. Assets transferred to an irrevocable Trust are no longer considered to be owned by the Trustor and are therefore protected from potential nursing home expenses.
Another option to protect your home from potential nursing home expenses is a life estate deed. A life estate deed allows you to transfer ownership of your home to another person (such as a family member) while retaining the right to live in the home for the rest of your life. This allows you to protect your home from potential nursing home expenses while still maintaining the right to live in your home.
Protect Your Assets. Speak with an Experienced Estate Planning Attorney
While a revocable Trust offers many benefits, protecting your home from potential nursing home expenses is not one of them. If you are concerned about protecting your assets from potential nursing home expenses, it is important to speak with an experienced estate planning attorney to discuss your options. An irrevocable Trust or a life estate deed may be more effective in protecting your home and other assets from potential nursing home expenses. Understanding your options and working with a skilled attorney can provide peace of mind and help ensure that your assets are protected for the future.