any of the seniors I work with transfer assets, often their homes, into irrevocable trusts in order to protect their property in the event they or their spouse need long-term care. After a five-year period, this allows them to qualify for MassHealth (Medicaid) benefits without having to spend down the trust assets and protects their home from Medicaid liens. If necessary, it also permits their children to sell the home without the proceeds having to be spent down.
However, these trusts, if properly drafted, offer the additional advantage of protecting assets from other risks. For example, assets in an irrevocable trust cannot be reached by a lawsuit for any reason. The trust assets also avoid probate, thus reducing expenses to the estate.
Massachusetts irrevocable trusts can even be drafted to protect the children and grandchildren of the client by shielding their future inheritance from lawsuits, bankruptcy, divorce and early death.
If asset protection and maintaining your family’s legacy is one of your priorities, call the Heritage Law Center to discuss how long-term care planning can include asset protection as well.