Hello, my name is Christopher Lavin. I’m an attorney with the Lavin Elder Law. We are an elder law firm here in Lebanon, Ohio.
Been doing it for a long time. A lot of clients will come in and ask about traditional planning, which includes trust planning. We don’t use trust the same way as the Kennedys do, but I think we finally figured out what they do and don’t do for us.
But what’s confusing the folks is there’s as many types of trust as cars in a parking lot. And specifically what most of our clients are asking us about at the later stages of life is, will a trust protect me, not just from good old-fashioned death and taxes, but will it protect me if I get sick or need long-term care? The answer is, it can. Probably.
Most likely. You know, the attorney answered. But yes, the proper trust can protect the house, especially from the long-term care spend-down.
Now, the specific type of trust that you should be asking your attorney about is an irrevocable Medicaid preservation trust. The word irrevocable is important, but it also is scary because the word irrevocable is a big word that does put a limitation on you. By nature, it means you cannot do something.
Believe me, these trusts are very flexible. They’ve been around for almost two generations now. And really, the only limitation is that you’re saying to the family, I’m willing to give up some responsibility.
The language requires you to have the assistance of another. We call them helpers, trustees, trust protectors. It’s a third party and it’s a child.
So, if I can add that language to my trust, entrust my child with that responsibility, then yes, after a period of time, we’ll talk about that in future videos, that the house can be protected from the spend down.