The Senior Trust approach protects assets from nursing home expenses, provides a stream of income for seniors and preserves principal for loved ones (children and grandchildren). It also avoids probate (lifetime and at death) and protects financial and family privacy. Healthy individuals 60s and 70s can benefit themselves and protect most of their estate for loved ones, even if later required to enter a nursing home.

Asset Protection Planning and Senior Trusts are for persons who have an estate between $50,000 and $750,000, or what Estate Crafters calls a "modest sized" estate, that wants the bulk of it to go to children, grandchildren or loved ones. And, for persons who are concerned that they or their spouse may have to spend some time in a nursing home, as 40 percent of us will.

Those with “Modest Sized” estates cannot afford Long Term (Nursing Home) Care. Eighty percent of Americans die in a nursing home or acute care hospital today. Twin Cities nursing homes average cost is $150 per day, more than $50,000 per year. The average stay is three years. Can your family afford a $150,000 nursing home bill or perhaps $300,000 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 to consume their assets until all they have left is $3,000. This causes loved ones to be “disinherited.”

First: Intangible Personal Property, i.e. savings accounts, CD’s, mutual funds, stocks and bonds.
Second: Real Estate, other than the homestead, i.e. 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 three years after they have been placed in your Seniors Family Trust. Two of every three nursing home residents receive MA.

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

Yes. Transfers to benefit family members are ideally done three years (36 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 and special valuation gifts woven into a Asset Protection Plan or a Seniors Family Trust to preserve most, and sometimes all, of one’s estate for children or loved ones, even when a nursing home stay appears imminent or inevitable.

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

No, not if carefully made. Gifts are not voided unless an MA application is made within the "penalty" period. Families have been coming to Estate Crafters for more than 18 years to advantageously plan their finances within the law in the event of incapacity. Estate Crafters protects your assets from the "Spend Down" Rule like your CPA protects your income from income taxes.

If you have a "modest sized" estate and want assurance that the bulk of it will go to your child(ren) or loved one(s), even if you have to enter a nursing home, Seniors Family Trust can help.

Yes. The younger we are the less likely we’ll need nursing home care within the next three years.
Yes. Healthy younger folks often like to have their “Asset Protection” plans in place and then receive all the income from their Seniors Family Trust even though they’re well and live independently. Once their Seniors Family Trust is three or more years old, no “Spend Down” is required upon entering a nursing home.
Yes. Should a nursing home stay be required, a Seniors Family Trust will pay out its income to the “at home” or “community spouse.”
Yes. Careful investing by the trustee can reduce or eliminate asset shrinkage. Sometimes the assets grow when wisely managed.
Yes. Estate Crafters has already adapted the Seniors Family Trust to help several younger families in their 50s & 60s protect the community spouse’s income, and their children’s inheritance, even if one of the spouses is forced to live in a nursing home after a disabling accident, stroke or sickness.

Call and share a few key facts with Estate Crafters to determine whether a complete evaluation would 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 children and loved ones 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 suits your family’s needs and goals.

Assures Finances
INCOME FOR LIFE: Elders retain the right to income for life.
SELECT OWN TRUSTEE: Elders, not an unknown judge, select their own trusted adult child or loved one to be their trustee.
INDEPENDENCE AND DIGNITY: Elders retain control of household checking and savings.

Protects Assets From
CREDITORS of elder(s) and their children.
IN-LAWS ex-spouses of divorced children.

Avoids Probate
ESTATE need not be probated. Avoids publicity, costs and delays of probate proceedings at death.
CONSERVATORSHIP OR GUARDIANSHIP is unnecessary. Trustee or POA handles personal financial affairs and Health Care agent medical matters.

Saves Taxes
INCOME by using the elders’ lower tax bracket and “step up in basis”.
REAL ESTATE by preserving the “homestead” exemption.
ESTATE & GIFT by using lifetime credits & annual exclusions.

Preserves Privacy
Financial
The family’s financial condition is not spread across public records at the Probate Court for prying eyes to see or to generate gossip.

Personal and 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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