Placing property into a trust

[WCB]

I will contact an estate planner or attorney before I move forward but though I would start by asking questions. Someone here may have done this or considered it.
If I place my property in a trust, will the property be protected from lets say a nursing home if I had to be put in one? When my mother went in they (probably the gov) took what insurance she had before Medicare covered things. Can I keep this from happening with a trust?
tia

[Traildust]

In. Wondering myself

[Atfulldraw]

Answer: lawyer

Lawyer answer: It depends.

[Shane]

Medicare doesn't pay for nursing home care. Medicaid (welfare program) does, but only for people who don't have much money. The government doesn't take your money if you need nursing home care. If you need nursing home care, you have to pay for it yourself through long term care insurance and/or your own money. If you don't have or run out of insurance and money, then Medicaid will step in and pay. Some people give money to their kids/family and/or to a Miller trust in order to drain their assets so that they'll qualify for Medicaid if/when they need long term care. There are some potentially big downsides. You have to give your money to someone else or to a trust that you can not control yourself at least 5 years before you go into a nursing home. If you give assets away less than 5 years out, Medicaid will penalize you. So if you want Medicaid to pay for your nursing home care, you have to give up ownership and control of your assets for a minimum of 5 years before you need care. You can spend your money on a few necessity-type things without violating the 5-year look back rule (pay off debt, home modifications, pre-paid funeral, etc.). There's a lot more to it than that. Talk to an elder law attorney (I'm not one). There are things that can be done. Whether the pros outweigh the cons will depend on you and your family and your needs and goals. But you can't just put your money in a trust, maintain full control of it, and get Medicaid (the taxpayers) to pay for your nursing home care.

[Walker]

Depends on if you want good care or government care.

[Huntingfool]

Medicare doesn't pay for nursing home care. Medicaid (welfare program) does, but only for people who don't have much money. The government doesn't take your money if you need nursing home care. If you need nursing home care, you have to pay for it yourself through long term care insurance and/or your own money. If you don't have or run out of insurance and money, then Medicaid will step in and pay. Some people give money to their kids/family and/or to a Miller trust in order to drain their assets so that they'll qualify for Medicaid if/when they need long term care. There are some potentially big downsides. You have to give your money to someone else or to a trust that you can not control yourself at least 5 years before you go into a nursing home. If you give assets away less than 5 years out, Medicaid will penalize you. So if you want Medicaid to pay for your nursing home care, you have to give up ownership and control of your assets for a minimum of 5 years before you need care. You can spend your money on a few necessity-type things without violating the 5-year look back rule (pay off debt, home modifications, pre-paid funeral, etc.). There's a lot more to it than that. Talk to an elder law attorney (I'm not one). There are things that can be done. Whether the pros outweigh the cons will depend on you and your family and your needs and goals. But you can't just put your money in a trust, maintain full control of it, and get Medicaid (the taxpayers) to pay for your nursing home care.

THIS - find an elder care attorney and listen to what they advise - 43 years I did this stuff - DO NOT DYI it !

[WCB]

THIS - find an elder care attorney and listen to what they advise - 43 years I did this stuff - DO NOT DYI it !

No way I was going to try something like this for myself. I was wanting to see if there is a way to protect our property if one of us go down and we only have Medicare as insurance.

We’ll look into an elder care attorney for advice.

[Froggy]

My Mom set up a trust in 2015 with this estate planning lawyer out of Flower Mound. He made everything simple and helped us when she passed. My wife and I recently had him set up our trust, including our property. Smart and honest. Texas Board Certified in estate planning and probate law.

https://meredithpc.com/jason-meredith/

[Double R 2]

As many have already said, get a good elder law attorney. Our family has worked with one for a while and if you get a good one, it will be much easier on your kids when your time comes. My stepdad passed earlier this year and things went very smoothly after he was no longer with us.

[GARY]

Answer: lawyer

Lawyer answer: It depends.

Yep. Lawyer for sure. I have seen two things successfully work in Texas

1) My pops had his mother put her house under the lady bird deed along with some other acreage. When she went into a home, the state liquidated her cash (they hadn't solved that yet through legal means) before medicaid kicked in coverage. When she passed, the deed held up and the house went to the kids.
2) My mother in law had no assets of value (under $20K - we were supporting her with living expenses) , less her house ($200k's). I found through my own research about a TODD Deed (transfer upon death). Local lawyer helped me draw it up. Upon her passing, we teste it and it too passed so my wife and kids were able to keep the home.

My folks have since put their home place here in Shiner under the same lady bird deed. It's now been well over 5 years threshold - so unless the law changes it should hold up again when we test it upon their passing.

[muzzlebrake]

Medicare doesn't pay for nursing home care. Medicaid (welfare program) does, but only for people who don't have much money. The government doesn't take your money if you need nursing home care. If you need nursing home care, you have to pay for it yourself through long term care insurance and/or your own money. If you don't have or run out of insurance and money, then Medicaid will step in and pay. Some people give money to their kids/family and/or to a Miller trust in order to drain their assets so that they'll qualify for Medicaid if/when they need long term care. There are some potentially big downsides. You have to give your money to someone else or to a trust that you can not control yourself at least 5 years before you go into a nursing home. If you give assets away less than 5 years out, Medicaid will penalize you. So if you want Medicaid to pay for your nursing home care, you have to give up ownership and control of your assets for a minimum of 5 years before you need care. You can spend your money on a few necessity-type things without violating the 5-year look back rule (pay off debt, home modifications, pre-paid funeral, etc.). There's a lot more to it than that. Talk to an elder law attorney (I'm not one). There are things that can be done. Whether the pros outweigh the cons will depend on you and your family and your needs and goals. But you can't just put your money in a trust, maintain full control of it, and get Medicaid (the taxpayers) to pay for your nursing home care.

Similar to what my Dad did. They then gifted me and my brother $10K each every year until money was gone except for $2,000 in their checking account. I then took over paying all their utility bills and property taxes. Upon their passings the real property was transferred to me and my brother. My dad passed at home and my mother 5 years later in a nursing home. Since my dad was a state employee my mother collected his retirement until she passed and during this time this money was taken by the nursing home and supplemented with Medicad. My mother was also covered under the state's teachers insurance which was Sigma that my dad had as a retired state employee until she passed.

[ThisLadyHunts]

GARY, what do you mean when you say “the state liquidated her cash”? How was this done?

And muzzlebrake, same question. What do you mean by “this money was taken by the nursing home and supplemented by Medicaid”?

I find myself in charge of taking care of my elderly parents, overseeing their healthcare, finances, etc., but I haven’t come across an instance where the state, or any other entity, has moved to “seize” my parent’s assets nor compelled us to liquidate them. Needless to say, their immediate healthcare needs (they’re in a long term care facility) are a big drain on their reserves. But, I have to admit, MediCare has been a wonderful benefit for them (and I don’t say this lightly as I don’t often have praise for government programs).

[WCB]

I guess what I am curious about is let’s say one of us has to be put into a home and once we tap out our savings, will the other one lose the house? Trying to keep that from happening.

[Shane]

"Taken by the nursing home" means that the monthly fee for the nursing home must be paid out of pocket if the person needing care has sufficient assets and/or income. If your assets and income don't cover it all, then Medicaid picks up the difference. The amount and type of assets and income you're allowed to keep before Medicaid pays varies, depending on whether the person needing care is single, married with a healthy spouse, or married to a spouse who also needs care.

Here's some good info that explains it:

https://www.medicaidplanningassistance.org/medicaid-eligibility-texas/

[WCB]

"Taken by the nursing home" means that the monthly fee for the nursing home must be paid out of pocket if the person needing care has sufficient assets and/or income. If your assets and income don't cover it all, then Medicaid picks up the difference. The amount and type of assets and income you're allowed to keep before Medicaid pays varies, depending on whether the person needing care is single, married with a healthy spouse, or married to a spouse who also needs care.

Here's some good info that explains it:

https://www.medicaidplanningassistan...ibility-texas/

Thank you Shane