An Irrevocable Trust, also known as an income-only trust, is a financial instrument that can be established to “own” your assets, paying you income each month.
For the purposes of Medicaid planning, an IT can be used to ensure that your assets are protected from nursing homes, should you require care.
By adjusting the amount of income you receive from your trust, you can become eligible for Medicaid benefits in the event that long term care is needed, while retaining your legacy to pass on to loved ones.
Irrevocable Trusts are relatively flexible instruments, allowing a great deal of control in terms of what is owned, or selling and buying new assets within the trust.
Typically, families will appoint an adult child or other close person as the trustee, whose job it is to pay out the monthly income and manage the assets as directed.
Trustees can’t spend the principal, and in most cases, you can’t either.
There are ways to access the principal as needed though, including dissolving the trust and making gifts from the trust to a third party, who can then gift you the money.
The attorneys at Friedman & Ranzenhofer can help you prepare for the future and keep your wealth intact.
Call us today at 716-542-5444 for a free consultation with an experienced Buffalo Medicaid planning attorney.