Yes, an irrevocable trust can be a highly effective estate planning tool to protect your assets from nursing home costs in New York State. By placing assets into an irrevocable trust, you can preserve your wealth for future generations while also potentially qualifying for Medicaid benefits to cover long-term care. This trust is often a key part of a comprehensive estate plan that safeguards your financial future and ensures your goals are met.
At Pierro, Connor & Strauss, our attorneys are here to guide you through the process of determining whether an irrevocable trust fits into your unique estate plan, aligning with your long-term care needs and financial objectives.
What is an Irrevocable Trust?
An irrevocable trust is a legal structure designed to protect assets and offer various benefits. Once assets are transferred into the trust, the terms generally can only be changed with the consent of the beneficiaries. This offers long-term protection and security for the assets you place within the trust.
Key features of an irrevocable trust include:
- Assets in the trust are protected from creditors, nursing homes, elder care facilities, and legal claims.
- Trust assets pass to beneficiaries without the need for probate.
- Assets transferred into an irrevocable trust are no longer considered part of your estate.
- An irrevocable trust, particularly when structured as a Medicaid Asset Protection Trust (MAPT), allows you to qualify for Medicaid benefits, which can cover long-term care costs for home care and in nursing homes.
- When properly established, a MAPT can also protect assets from Medicaid recovery efforts after your passing.
Irrevocable trusts can be created during your lifetime (living trusts) or upon your death (testamentary trusts). Our experienced attorneys can help you decide which type of trust is most beneficial for your estate plan.
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Louis W. Pierro
Pierrolaw
Aaron E. Connor
Pierrolaw
