Secure the Family Money #estateplanning #assetprotectionplanning #irrevocabletrust

10 Mar 2023 · 1 min

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In this video, Jerry Taylor warns that without proper planning, a person’s or their parents’ lifetime earnings can be seized by the government to cover long‑term medical costs, especially nursing‑home care. He explains that qualifying for Medicaid typically requires impoverishing oneself, but outlines four asset‑protection strategies to preserve wealth while still obtaining Medicaid benefits: (1) transferring assets into an irrevocable/asset‑protection trust and waiting the five‑year look‑back period; (2) placing assets in a Medicaid‑compliant annuity or promissory note; (3) establishing a caregiver or personal‑care agreement with a friend or family member, which Medicaid does not normally cover; and (4) moving assets to a surviving spouse, which may offer better protection despite possible future Medicaid claims. He emphasizes the importance of consulting a qualified attorney to navigate state‑specific rules and ensure the strategies are properly implemented.

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all the money you or your parents earned during your lives could be taken by the government to pay for medical care. I'm going to tell you how you can avoid that. You have to understand that if you or your parents need long-term care, nursing home care down the road, you either have to pay for that out of your pocket with long-term care insurance or with Medicaid benefits. To get Medicaid, you basically have to make yourself poor. Here's how to avoid doing that. Strategy 1 is to put as much of what you have as possible into an asset protection trust. Once it's been in there for 5 years, It's protected from Medicaid. Strategy 2 is to put your assets into an annuity or a promissory note that is Medicaid compliant. Strategy 3 is a caregiver or a personal care agreement where a friend or a family member can provide care to you that Medicaid would not normally provide. Strategy 4, if there's a spouse still living at home, transferring assets to that spouse. Medicaid may still want some of that money in the long run, but there's a better chance of preserving it. It will pay to get professional legal help to find out what your state allows on all of these.