Irrevocable Trust Lawyer in Glen Burnie, MD
An irrevocable trust can serve as a valuable tool in a plan to qualify for Medicaid long-term care benefits. If structured and managed properly, an irrevocable trust can allow individuals to conserve resources while reducing their assets to meet eligibility thresholds.
It is essential to ensure that the trust terms comply with federal law as well as Maryland Medicaid rules. At Chesapeake Wills & Trusts, we build trusts tailored to our clients’ specific goals. We can create an irrevocable trust to help you establish Medicaid eligibility, assist you with funding and managing the trust properly, and ensure that your trust coordinates with other aspects of your estate plan to protect your assets and meet future needs.
How an Irrevocable Trust Operates
An irrevocable trust is a legal entity created to hold property. The person who establishes the trust is often referred to as the grantor. They grant property from their possession into the trust, and from that point on, they no longer own the property. The trust owns it, and the grantor cannot get it back. While this may seem frighteningly inflexible, it is the rigidity of this legal arrangement that gives an irrevocable trust the strength to accomplish important goals.
Property in the trust is managed by the trustee. Because the trustee must act in accordance with the terms of the trust agreement and follow all applicable laws and rules, many people decide to designate a legal or financial professional to serve as the trustee. A trustee has a fiduciary duty to act in the best interests of the beneficiary and maintain the integrity of the trust property.
The trustee manages the property in the trust not for their own use but for the use of the beneficiary—and there can be more than one beneficiary.
An irrevocable trust can be established through a will, in which case it does not take effect until the grantor passes away. To qualify for Medicaid benefits to pay for long-term care, however, the grantor would work with an estate planning attorney to set up an irrevocable living trust with immediate effect.
Using an Irrevocable Trust to Help with Nursing Home and Long-Term Care Costs
Because an irrevocable trust cannot be changed and property in the trust cannot be removed by the grantor, the property no longer legally belongs to the grantor. Creditors cannot take it, and this includes nursing homes, if the trust has been properly prepared and funded after it has been in the trust at least 5 years.
Get the Right Irrevocable Trust to Help You Cover Long-Term Care Costs
For experienced guidance on creating and managing an irrevocable trust in Maryland, turn to the team at Chesapeake Wills & Trusts. Call 410-590-1900 or fill out the convenient online form to schedule a consultation with an irrevocable trust lawyer who can tailor a trust to your specific needs and goals. We can help you preserve some of the assets you have worked so hard to gain for your family.
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