Are Trusts Only for the Wealthy?
There is a wide range of misconceptions about how certain estate planning tools or documents work and whom they are designed to benefit. Very commonly, people mistakenly assume that trusts are only beneficial to wealthy or high-net-worth individuals who are working with an estate planning lawyer. While certain types of trusts might be more beneficial to individuals with significant assets, trusts can be helpful — and sometimes essential — for people regardless of the amount of wealth they have (or have not) accumulated. Most issues pertaining to trusts in the Oak Park area are governed by the Illinois Trust Code.
Our Oak Park estate planning lawyers can tell you more about certain trusts that may be relevant to your situation and may be able to help you regardless of your net worth. Trusts can help you preserve and protect your assets in the event of certain health emergencies, and they can also allow you to continue to provide for a loved one who is eligible for asset-based government benefits.
Medicaid Asset Protection Trust (MAPT)
One of the important aspects of estate planning is Medicaid planning and considering options for paying for long-term care, especially for older adults. You never know when or why you may require long-term care, and in order to be eligible for Medicaid coverage for long-term care, many adults — even with modest assets — will need to “spend down” to become eligible. The process of spending down can involve using tens of thousands of dollars saved over decades of hard work to pay for long-term care until becoming eligible for Medicaid.
A potential way to avoid having to spend down (i.e., to pay for long-term care until your assets are sufficiently limited that you qualify for Medicaid) is to establish a Medicaid asset protection trust (or MAPT). You should know that MAPTs are irrevocable, which means you cannot change your mind after establishing one, and the trustee will have control of the assets once the trust is established. However, establishing a MAPT can protect your assets if and when you require long-term care and want to qualify for Medicaid.
Special Needs Trust (SNT)
Do you have a child with special needs or another relative or friend with special needs for whom you provide care? That person may be eligible for federal benefits like Medicaid and TANF benefits once they are adults, but receiving an inheritance could disqualify them from those benefits, requiring them to use their inheritance to pay for medical care or food that their government benefits would have covered. You may be wondering if there is a way to leave assets to this person without impacting their eligibility for federal benefits, and the answer is often a special needs trust (or SNT).
Contact an Oak Park Estate Planning Lawyer Today
Medicaid asset protection trusts and special needs trusts are just two types of trusts that may be beneficial to individuals in the Oak Park area regardless of accumulated wealth or assets. To learn more about how establishing a trust could be helpful to you or could benefit your loved ones, you should get in touch with one of the experienced Oak Park estate planning attorneys at our firm. Contact the Emerson Law Firm to get started on the estate planning process.
See Related Blog Posts:
What is a Codicil?
How to Choose an Executor of Your Estate
Our Oak Park estate planning lawyers can tell you more about certain trusts that may be relevant to your situation and may be able to help you regardless of your net worth. Trusts can help you preserve and protect your assets in the event of certain health emergencies, and they can also allow you to continue to provide for a loved one who is eligible for asset-based government benefits.
Medicaid Asset Protection Trust (MAPT)
One of the important aspects of estate planning is Medicaid planning and considering options for paying for long-term care, especially for older adults. You never know when or why you may require long-term care, and in order to be eligible for Medicaid coverage for long-term care, many adults — even with modest assets — will need to “spend down” to become eligible. The process of spending down can involve using tens of thousands of dollars saved over decades of hard work to pay for long-term care until becoming eligible for Medicaid.
A potential way to avoid having to spend down (i.e., to pay for long-term care until your assets are sufficiently limited that you qualify for Medicaid) is to establish a Medicaid asset protection trust (or MAPT). You should know that MAPTs are irrevocable, which means you cannot change your mind after establishing one, and the trustee will have control of the assets once the trust is established. However, establishing a MAPT can protect your assets if and when you require long-term care and want to qualify for Medicaid.
Special Needs Trust (SNT)
Do you have a child with special needs or another relative or friend with special needs for whom you provide care? That person may be eligible for federal benefits like Medicaid and TANF benefits once they are adults, but receiving an inheritance could disqualify them from those benefits, requiring them to use their inheritance to pay for medical care or food that their government benefits would have covered. You may be wondering if there is a way to leave assets to this person without impacting their eligibility for federal benefits, and the answer is often a special needs trust (or SNT).
Contact an Oak Park Estate Planning Lawyer Today
Medicaid asset protection trusts and special needs trusts are just two types of trusts that may be beneficial to individuals in the Oak Park area regardless of accumulated wealth or assets. To learn more about how establishing a trust could be helpful to you or could benefit your loved ones, you should get in touch with one of the experienced Oak Park estate planning attorneys at our firm. Contact the Emerson Law Firm to get started on the estate planning process.
See Related Blog Posts:
What is a Codicil?
How to Choose an Executor of Your Estate
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