These days, to preserve your wealth while ensuring your own comfort later in life, you have to be creative. If your goals include safeguarding your nest egg, passing on wealth to future generations and covering the costs of elder care, you need a plan that integrates multiple solutions.
Here are some steps to consider.
In addition to drafting a will and assigning powers of attorney, establish a trust that meets your needs and those of your family.
A trust can be an effective estate planning tool in a number of ways. Depending on your specific goals and the kind of trust you choose, a trust can:
- Help your estate avoid probate
- Minimize your estate’s tax burden
- Pass estate assets on to heirs in a manner of your choosing
- Help maximize eligibility for government benefits such as Medicaid and VA benefits
To better understand your trust options, please see our overview of trust creation.
The high cost of care in a nursing home or an assisted living facility can quickly drain estate assets. Account for these costs and preserve assets with effective Medicaid planning.
A number of techniques can be used to preserve assets while also maintaining eligibility for Medicaid benefits, which can help defray the costs of care in a nursing home or an assisted-living facility.
Spending down assets is one way to qualify for Medicaid coverage, but before doing that, speak with an experienced elder law attorney about your options. Depending on your specific circumstances, those options may include a combination of:
- Trust planning
- Wealth transfers
- Social Security benefits
- Veterans benefits
- Private disability benefits
- Long-term care insurance
For more on these matters, please see our elder law overview. The JHS firm advises and represents clients in Waco and the surrounding areas.