Revocable, Irrevocable & Special Needs Trusts
From an Elder Law perspective, Trust Planning can be very important. We use various types of trusts for our clients. Each one is used for varying purposes at varying times.
Additionally, there are some common misconceptions about trusts. For example, some may think trusts are only necessary for affluent individuals. Or, that a trust’s only purpose is to avoid probate court. While this can be true, trusts can be used for asset protection planning for aging and disabled individuals.
Understanding the Vital Types of Trusts:
- Revocable Trusts: Revocable trusts offer flexibility and control. Clients can modify or revoke these types of trusts during their lifetime. Therefore, making them an excellent tool for estate planning, avoiding probate, and ensuring seamless asset management and distribution.
- Irrevocable Trusts: Irrevocable trusts provide asset protection, especially for aging and disabled individuals. By transferring assets into an irrevocable trust, clients can shield them from potential creditors. As well as address long-term care planning needs effectively.
- Special Needs Trusts: Special Needs Trusts, also known as Supplemental Needs Trusts, are instrumental in preserving government benefits for individuals with disabilities. These types of trusts allow for the management of funds. Therefore, enhancing an individual’s quality of life without jeopardizing eligibility for crucial public assistance programs.
Crucial Considerations in Trust Planning for Long-Term Care:
- Grantor’s Competency and Health: Evaluating the competency and health of the potential Grantor is paramount in trust planning. Therefore, understanding their capacity to make informed decisions ensures that the trust accurately aligns with its owner’s wishes and needs.
- Power of Attorney Provisions: Types of Powers included in a power of attorney document. for the potential Grantor, are essential elements to consider. These provisions influence the management and control of assets within the trust. Thus, impacting its effectiveness in meeting the Grantor’s goals.
- Tax Implications and Financial Assets: Careful assessment of tax implications on financial assets is crucial. Structuring trusts in a tax-efficient manner helps in optimizing asset protection and financial benefits for the Grantor and their beneficiaries.
- Five-Year Look-Back Period: Comprehending the implications of the five-year look-back period on long-term care planning is vital. Furthermore, planning with consideration of this period allows for strategic asset allocation and protection while planning for potential Medicaid eligibility.
At Kane & Crowell, Attorneys At Law, we empower our clients to make informed decisions in trust planning. Our experienced attorneys guide you through the complexities of Revocable, Irrevocable, and Special Needs Trusts. Our goal is to provide solutions that align with your unique circumstances and aspirations. Contact us today to secure your legacy and ensure a prosperous future.
Contact Kane & Crowell, PLLC at (615) 784-4800 if you or a family member are considering trust planning for long-term care. It is our goal to make sure our clients have the quality of life they want and deserve. Not a life solely based on cost.