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Irrevocable “Medicaid” Trusts case, her home) so that her children will
The irrevocable “Medicaid” trust is a have a nest egg, and her grandchildren
special type of trust utilized to protect will be able to go to college without
your assets - and in some cases, make taking out student loans. Rose will
you eligible for government benefits nominate an independent trustee (a
- in the event that you require certain trusted relative, friend or colleague),
forms of care, while safeguarding your transfer title of her home into the Rose
assets for the benefit of your heirs. Smith Irrevocable Trust, and reserve
herself a little estate. Rose continues to
In New York State, the average cost of a live in her home, and remains eligible
nursing home is approaching for the same property tax exemptions to
$10,000.00 per month at the time of which she was previously entitled.
writing. In the downstate region, the
cost of such care already exceeds that Six years later, Rose requires nursing
number by approximately 20%. As such, home care, and spends three years in
the cost of care quickly diminish your a nursing home prior to her eventual
hard earned savings, and prevent your passing. Had Rose maintained her
children from inheriting the money that home in her individual name rather
they otherwise would. an transferring her home to the trust,
her estate would be liable to the
Let’s utilize the example of “Rose nursing home for the cost of the care
Smith”, a fictional prospective client. - at $10,000.00 per month for three
Rose has pension and security income years, $360,000.00. Her family would
of approximately $3,000.00 per month, inherit 10% of her estate, with the
and owns her home outright and free nursing home taking the remainder
of any mortgage. Her home is valued of the funds. However, because Rose
at $400,000.00, but she has few other utilized proper planning, the home
assets. Rose knows that she wants to live passes outside of her estate, and her
in her home until her demise, but has a creditors cannot collect against the
history of Alzheimer’s in her family, and house.
wants to protect her major asset (in this Upon her passing, Rose’s life estate
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