An irrevocable trust is a very powerful tool for Medicaid Asset Protection, as it allows you to shelter assets from a nursing home after they have been in the trust for five years. Even though sometimes people worry about ever being able to acess that money, there is, in fact, a way to do that.Most irrevocable trusts provide Medicaid Asset Protection by not allowing you, the Grantor and Trustee, the ability to access the principal that’s placed into the trust. However, you do have the ability to make distributions of principal to the principal beneficiaries, who are usually the children. So, let’s say you and your spouse put a significant amount of assets into an irrevocable trust, and seven years later, decide you would really like to see the world. In that instance, you simply make a distribution of principal from your trust to a principal beneficiary. The beneficiary is then free to use that money as they see fit – in this case, buying a pair of around the world cruise tickets for their parents. Thus, in certain instances, it is possible, indirectly, to access funds that you have placed into an irrevocable trust in order to proect assets from a nursing home. At Brigthwell Elder & Probate Law, we can help you create a plan that no only provides nursing home protection, but also allows you to maintain control over your assets.
