Having the means to obtain any needed care is often a goal for many older Maryland residents. Because it is common for elderly individuals to need some sort of nursing home stay at some point, planning ahead for such an event could help parties ensure that they and their family are not at risk of losing everything due to unexpected expenses. In some ways, an irrevocable trust could help with long-term care planning.
When utilizing an irrevocable trust, the trust creator, or grantor, will not be able to change the trust or have access to the assets in trust. The grantor essentially gifts property to the trust, which can work to preserve the property for other family members. If a grantor puts a home into the trust, he or she may have the ability to continue using the home.
Additionally, by placing items into a trust, those items remain protected from nursing home or other care costs. Because they are no longer accessible by the grantor or considered part of his or her estate, the items cannot be used to pay outstanding expenses accrued while receiving care. Irrevocable trusts may also be able to provide other uses for long-term care planning.
It is understandable if the idea of utilizing an irrevocable trust in such a manner seems confusing. The process can potentially become complex, and individuals may wish to explore their options and gain more information on how to go about effectively protecting their assets in this manner. Experienced attorneys could provide valuable information to Maryland residents who are interested in long-term care planning, wealth preservation and the use of trusts.
Source: wilmingtonbiz.com, "Trusts As A Tool In Long-term Care Planning", Andrew Olsen, June 26, 2017