Options in Protecting the Assets Aside from Trust

Other Than a Trust, What Are Options for Protecting the Assets of a Family Member Living in an Assisted Living Community Once Their Long-Term Care Insurance Runs Out?

When a family member is living in an assisted living community, and their long-term care insurance runs out, it can be challenging for both the individual and their loved ones. One of the main concerns is protecting the individual's assets and ensuring they have the financial resources they need to continue receiving care. In addition to using a trust, several other options may be suitable for protecting the assets of a family member in this situation.

Medicaid Planning

If the individual's assets are below a certain threshold, they may be eligible for Medicaid, a government-funded health insurance program that covers long-term care costs. Medicaid has strict eligibility requirements, including limits on the number of assets an individual can own. However, with proper planning, it may be possible to preserve some of the individual's assets while still qualifying for Medicaid. This can be done through strategies such as transferring assets to a Medicaid trust or setting up a Medicaid annuity.

Veterans Benefits

If the individual is a veteran, they may be eligible for benefits through the Department of Veterans Affairs (VA). The VA offers a program called Aid and Attendance that provides financial assistance to veterans and their surviving spouses who need help with daily activities such as bathing, dressing, and eating. To be eligible, the individual must meet certain requirements, including a need for assistance with activities of daily living and a service-connected disability.

Reverse Mortgages

A reverse mortgage is a type of loan that allows a homeowner to borrow against the equity in their home. Seniors often use it as a way to generate income or access cash to pay for long-term care expenses. With a reverse mortgage, the borrower is not required to make monthly payments, and the loan is typically repaid when the borrower sells the home or passes away. Reverse mortgages can be a good option for preserving assets, but it is important to understand the terms and potential risks and any impact on the individual's estate.

Sale of Assets

If the individual has assets that are not protected through other means, such as a trust or Medicaid planning, it may be necessary to sell them to pay for long-term care expenses. This could include selling a home, vehicle, or other valuable possessions. It is important to carefully consider the financial and emotional implications of selling assets and the potential tax consequences.

Conclusion

There are several options for protecting the assets of a family member living in an assisted living community once their long-term care insurance runs out. These include Medicaid planning, veterans benefits, reverse mortgages, and the sale of assets. It is important to carefully consider the pros and cons of each option and seek the advice of an attorney to determine the best course of action.

Estate Planning Attorney Free Consultation In Utah

If you need legal help, call this law firm and talk with our experienced attorneys about financial and estate planning for a FREE consultation.

We help you with Estate Planning, Wills, Trusts, Power of Attorney, Health Care Directive, Estate Administration, Probate and More

Parklin Law - Estate Planning

5772 W 8030 S, # N206

West Jordan UT 84081

(801) 618-0699

https://parkin-law.business.site/

40.605070, -112.027530

Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.

Location: Heber City, UT 84032, USA

Popular posts from this blog

Personal Liability of an LLC

Can the Owner of a Limited Liability Company Be Penalized? As a business owner, you must understand the potential risks and liabilities you may face. If you own a limited liability company (LLC), you may be wondering whether you can be personally penalized for the actions of your business. Here's what you need to know about the potential for personal penalties as an LLC owner. The Benefits of an LLC An LLC is a business structure combining elements of a corporation and a partnership. One of the main benefits of an LLC is that it offers personal liability protection for its owners, known as members. This means that, in most cases, the member's personal assets are protected from any legal action taken against the LLC. However, it's important to understand that this liability protection is not absolute. There are certain situations in which an LLC owner may be personally liable for the actions of the business. Personal Liability for LLC Owners There are several circumstances i...
Read more

Does a new will override an old will?

Image
Does a new will override an old will? Madison Assistant at  Parklin Law When you draft a new will, does it override an old one? That depends on how you drafted the old one. If you had your old will drawn up by an attorney, then the new will will not override it in most cases; however, if you prepared your old will on your own using self-help software or a do-it-yourself kit, then the new will should take precedence. Here's why: A properly drafted last will and testament is a legal document that is witnessed, signed and sealed according to state law. It’s been submitted for probate with the court system, which accepts jurisdiction over all wills in the state. Under these circumstances, a new will cannot supersede an old one. Note that this applies only to wills that were prepared by an attorney; if you try to change a last will and testament that was prepared by yourself or another party without following the rules established by your state’s laws, it's just as invalid as an un...
Read more

How do state intestacy laws affect estate planning?

How do state intestacy laws affect estate planning? Intestacy laws determine how a person's assets will be distributed if they die without a will. These laws vary from state to state but generally follow a similar pattern. What are intestacy laws? Intestacy laws govern the distribution of a person's assets if they die without a will. These laws determine who will inherit the deceased person's assets and in what proportions. Intestacy laws are designed to ensure that a person's assets are distributed fairly and consistently with their likely intentions. How do intestacy laws affect estate planning? Intestacy laws can affect estate planning in several ways. First, they provide a default plan for distributing a person's assets if they die without a will. This can be helpful in situations where a person has yet to make any plans for their assets, but it can also be problematic if the intestacy laws do not reflect the person's wishes. Second, intestacy laws can affec...
Read more