Can a protective trust be used to protect your home from long-term care expenses?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can a protective trust be used to protect your home from long-term care expenses?

A lawyer said that I could put my home in a protected trust so that should I need
long term care, the home is protected after 5 years. Is this correct?

Asked on August 8, 2018 under Estate Planning, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

It is generally true if by a protected trust you mean an irrevocable trust (one you cannot undo or change after the fact) with some trustee other than yourself or another family family member living in the home. (We say "generally" true because courts have enormous power to address strange, unique, etc. fact patterns, especially if some unfair or inequitable behavior is going on--it's essentially never the case that something is 100% guaranteed in all circumstances.) Of course, this means that you are taking the property out of your own ownership (the trust will own it) and control (the trust controls it, subject to instructions in the document creating the trust). While there are legal protections for you (e.g. the trustee has a "fiduciary duty" to act in your interest), you are still giving up flexibilty and control and incurring a different kind of risk (e.g. it won't benefit you if Medicaid can't get to the home if the trustee betrayed you and sold or transferred to someone else).


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption