I have a revocable trust. I thought that was for the purpose of protecting my assets in the event of needing nursing home care. I was told yesterday by a different lawyer that what I need is an asset trust for the home and a different trust for the savings. My desire is for my daughter to keep the house. The savings is the be used to maintain the house. Upon her selling the home the proceeds from sale would be divided equally among all children. Is the first trust truly irrelevant. She's been living and caring for me for 10 years. How can I protect her and ensure that the house/savings are safe.
A revocable trust will not work for what you are trying to avoid. Since it is revocable, medicaid will consider the trust as available assets. You would need to move these to an irrevocable trust. Remember, Ohio has a 5 year look back period from the date of application for medicaid. You definitely need to speak to an attorney that specializes in medicaid planning that can help set these up for you.
If an attorney told you that a revocable trust was adequate to protect your home for your caregiver daughter, the attorney committed malpractice. A revocable living trust will achieve nothing with respect to Medicaid Planning. You need to consult with an expert Elder Law or Medicaid/VA Planning attorney to do what you wish to do. There is a "caregiver" exception by which your home can be protected for your daughter, under the proper circumstances and with proper documentation and planning.
Mr. Huddleston is an Ohio-Certified Specialist in Estate Planning, Trust & Probate Law, with offices in Columbus and Dayton, serving client families and private business owners throughout Ohio. He may be contacted directly by phone toll-free at 888.488.7878 or by email [email protected] Mr. Huddleston responds to Avvo questions as a public service to help educate and provide general guidance to questioners, but his responses are not legal advice and do not create an attorney-client relationship.
Both attorneys are correct. It is recommended that you consult the local county bar association for attorney referrals.
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