Who needs such planning? Anyone who has an estate of less than one-million dollars, or what we call a “modest sized” estate, wants the bulk of it to go to loved ones, such as children and grandchildren, and is concerned they or their spouse may spend some time in a nursing home, as 50% of us will who reach age 65.

Those with “modest sized” estates typically cannot afford Long Term (Nursing Home) Care. Today, 80% of Americans die in a nursing home or acute care hospital. The average cost in a Twin Cities nursing home is close to $200 per day, more than $70,000 per year. The average stay is three years. Can your family afford a $210,000 nursing home bill, or perhaps $420,000 or more including a spouse?

If you go to a nursing home you’ll be subject to the “Spend Down” Rule. The rule requires individuals consume all their “available” assets until all they have is $3,000. Their loved ones will be “disinherited”.

First: Intangible Personal Property, i.e. savings accounts, CDs, mutual funds, stocks and bonds. Second: Real Estate, other than the homestead, i.e. any interest in a lake home, farm or other real property. Third: Your Homestead!

Medical Assistance (MA) will pay nursing home expenses in excess of your monthly income if you have no assets or your assets are “unavailable”, such as five years after they have been placed in your Legacy Trust™. Two of every three nursing home residents receive MA.

Yes. The care is the same or better than for “private pay” patients. By law, nursing homes cannot discriminate between “private pay” and MA patients in the care given or charges made.

Yes. Transfers to benefit family members are ideally done five years (60 months) before you or your spouse enter a nursing home or apply for Medical Assistance. However, Estate Crafters has used temporary and permanent exemptions, split interest transfers, care contracts, annuities and special valuation gifts woven into a family Asset Protection Plan using a Legacy Trust™ or other strategies to preserve most, and sometimes all, of one’s estate for child(ren) or loved one(s), even when a nursing home stay appears imminent or inevitable.

Now before a crisis, while you’re still active and vigorous, ideally five years or more before you become incapacitated. However, Estate Crafters regularly helps families with a senior member about to enter or already in a nursing home. Call us with your situation.

No. Not if carefully made. Gifts are not voidable unless an MA application is made within the “penalty” period. Families have been coming to Estate Crafters for over two decades to advantageously plan their finances within the law, in the event of incapacity. We protect your assets from the “Spend Down” Rule like your CPA protects your income from income taxes.

Yes. If you have a “modest sized” estate and want assurance that much of it will go to child(ren) or loved one(s) even if you may one day have to enter a nursing home.

Yes. If you can’t qualify health-wise, cannot afford or do not want to pay Long Term Care Insurance (LTCI) premiums for more than five years.

Yes. The younger we are the less likely we’ll become disabled and need nursing home care. Once your Legacy Trust™ is five years old, no “Spend Down” is required of trust assets upon entering a nursing home.

Yes. Should one spouse require nursing home care, the Legacy Trust™ is designed so distributions can be made for just the “Well”, “At Home” or “Community” spouse.

Yes. Wise investing by the trustee can grow Legacy Trust™ assets, especially when professionally managed.

Yes. Estate Crafters has adapted the Legacy Trust™ to help younger families in their 50s and 60s, protect the Community Spouse’s income and their child(ren)’s inheritance.

Call us and share a few key facts to determine whether having a complete evaluation will be worthwhile. If it is, you can schedule a Family Consultation with an Estate Crafters Attorney. The attorney will review all suitable Asset Protection options with you, including the estimated cost of each.

Yes. We encourage adult child(ren) and loved one(s) to come along, ask questions and learn about this complex ever-changing area of the law. The goal of the Family Consultation, is to empower you and your family to make a knowledgeable decision concerning which Asset Protection strategy best addresses your family’s needs and goals.

Assures Finances

Distribution from Income Continue Elder(s) can receive distributions as long as they live independently.
Select Own Fiduciaries You, not some unknown judge, select your Attorney-in-Fact and Health Care Agent. Your trusted adult child or loved one selects the Trustee.
Independence & Dignity Elder(s) can retain control of household finances, checking and savings.

Protects Your Assets From
Creditors of Elder(s), their child(ren) and loved one(s). In-Laws and grasping ex-spouses of child(ren) who divorce.

Avoids Probate Proceedings (Lifetime and at death)
Conservatorship or Guardianship is unnecessary. Trustee and/or Attorney-in-Fact can handle financial matters and Health Care Agent can handle health care and personal issues. Estate need not be probated at death, which avoids publicity, delays and costs of probate proceedings.

Saves Taxes
Estate & Gift by using lifetime unified credits and annual exclusions. Income by using the lower individual tax bracket(s). Real Estate by keeping the “homestead” classification, together with other protective real property strategies.

Preserves Privacy
Financial Details of the family’s financial condition are not spread across public records at the Probate Court for prying eyes to see. Personal & Family Potentially embarrassing diagnosis of a disability, including bizarre behavior resulting from it, does not become part of the Probate Court’s public records.

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