Video Summary
Can a trust protect my assets from creditors, lawsuits long-term care costs? The answer is no. A revocable trust does not protect your assets from any of those, and that you look through the trust to see who controls the asset and who the beneficiary is, and so that it is a myth that many people have that they think if they transfer their assets into a trust that is protected from the claims accreditors. Also, as far as applying for Medicaid, if you need to have long-term care, again, the assets in the trust and the income is considered yours and you have to apply for it. Even the Internal Revenue Service doesn’t require you to get a separate federal identification number if you’re the trustee of your trust. Now, if you set up an irrevocable trust, then that’s a different story. Then it will protect your assets. However you lose control, you can have any control over your assets, and so there’s still a five-year lookback period for if you go into skilled nursing care, but I don’t drive irrevocable trust and that I don’t like the idea you’re giving up control of your assets and what happens to them. If you have any questions, give me a call at (727) 847-2288.