There’s a real problem facing Americans over the age of 65 — the cost of nursing home care. It’s expensive and often unavoidable. A lucky few have enough income to cover the $80,000 per year cost. But how does the average person afford it?
Unfortunately, many “spend down” their property and savings so they can qualify for benefits. But…
There is another way.
You may have heard of an irrevocable trust, or what we call a nest egg trust. This common tool helps many families who want to protect assets and plan ahead for future aging and care costs.
Aren’t Trusts Just for Wealthy People?
It’s a common misconception that trusts are only for the wealthy. However, a nest egg trust is designed for regular, hardworking folks who have saved a bit for retirement. Many families who want to protect assets and plan ahead for future aging and care are deciding that a nest egg trust is the right tool for them.
So, What’s a Nest Egg Trust?
A nest egg trust is an irrevocable trust that protects your hard-earned savings and also helps you qualify for care benefits if you need some form of long-term care. There are many different types of trusts, and each depends on a person’s goals and situation. But the bottom line is they protect your property and savings so you can get the care you deserve without losing your entire financial legacy. You can read more about trusts and how they work here.
Isn’t That Too Good to Be True?
You qualify for Medicaid benefits AND you get to keep your hard-earned savings and assets? Yes, you do, but the nest egg trust involves a trade-off. To protect your assets, you must give up some control of them. What does this mean? It means any assets you put into the trust have some restrictions, so you can’t spend them any way you want anytime you want.
Of course, no one wants to give up control of their assets, but many families find that it is well worth the trade-off to protect their financial legacy (and save things like the family farm). They even find that the control they give up is much less than they expected.
How Do I Set Up a Trust — Isn’t It Complicated?
If you were to do it on your own, yes, it would be complicated. But with the help of an experienced and trusted elder law attorney, it’s not that complicated. And it’s well worth your effort. Properly planning for your future is one of the greatest gifts you can give your loved ones (and yourself!). Knowing your financial legacy is safe gives you a priceless amount of peace of mind.
How Can Edwards Group Help?
In addition to setting up a trust, we will help guide you through making decisions around the trust. We have more than a decade of experience in creating this type of trust for people — we know the problems to anticipate and address; we know how to make the decision-making process a bit easier; and we know the right questions to ask to make sure YOUR trust works for YOU and your unique family and circumstances. If you think a nest egg trust might be right for you, we encourage you to give us a call at 217-726-9200. We will be happy to review your situation with you and counsel you as to whether a nest egg trust is best for your circumstances and the goals you want to achieve.
To learn more on your own about nest egg trusts, download this FREE resource — Nest Egg Trusts: A Good Tool to Protect Property and Savings.