Hello: This is my first post at Motley Fool. My in-laws have created an irrevocable trust in an attempt to avoid having nursing home costs take their life savings. The trust was established by a reputable elder law attorney but the wording in the trust itself is unintelligible to non lawyers.Has anyone had any experience with this technique and did it work for them.
This is my first post at Motley Fool. Welcome! We hope your stay will be a rewarding one.My in-laws have created an irrevocable trust in an attempt to avoid having nursing home costs take their life savings. The trust was established by a reputable elder law attorney but the wording in the trust itself is unintelligible to non lawyers.Bad mistake, since if the trust is truly irrevocable it's a done deal. You'll just have to trust that he did what they wanted, unless you want another lawyer to review it. In any case, light candles that they don't need the care within the Medicaid lookback period or the whole scheme could unravel.<rant>If they won't change the law so that I don't have to pay nursing home expenses for people who could pay for themselves but don't want to, the least they could do is change the law so that the heirs had to put bumper stickers on their luxury SUV's saying "My parents are on welfare."</rant>Phil
Phil: You hold the not unreasonable opinion that medicaid planning is unethical. I am sure others hold the same opinion but let me offer another opinion. Currently if you have cancer and need $200,000 worth of care medicare pays. If you develop Alzheimer's and need $200,000 worth of care medicaire will not pay. Why does one disease qualify and not another. Wealthy Americans hire expensive tax attornies to help pass assets down to the next generation without paying one penny in taxes. Why should all the tax breaks belong to the rich.Presently nursing home care runs around $70,000 per year. If a middle class American requires such care for even 5 years that would cost them $350,000. How many families can afford such payments. Currently I say take advantage of the laws the way they are written. If they remove this possibility from middle class Americans, they should be fair and remove the tax breaks from the extremely wealthy as well.I wrote this post to see if anyone else was in this position. I have been doing my research and think I understand Medicaid trusts better than before and just wanted to see who else had been using one.Andy
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |