IRREVOCABLE ASSET PROTECTION TRUSTS

Our Elder Law/Asset Protection Attorney, Joseph McHugh, and his team specialize in the creation of a California Irrevocable Asset Protection Trust are designed to hold assets, including the residence (especially if there is additional real estate) and liquid assets (bank accounts or investment accounts). Call: (818) 241-4238

There are many reasons why California seniors should consider an Irrevocable Asset Protection Trust for their real estate and financial assets:

There are many reasons why aging people in California should consider moving their home and other assets out of their name and into an Asset Protection Trust!
Protection from Personal Injury Lawsuits (generally seniors causing car accidents is a big concern!).
Protection from “Undue Influence” of others getting seniors to sell or give away the house for a lower value.
The Irrevocable Trust has a trusted person as trustee that has the legal responsibility to manage the house and financial assets for the senior’s needs and then assets distribute according to the Trust after death .

Qualifying For California Medi-Cal…Asset Limits Are Changing!

Effective January of 2024 California will have a NO Asset Limit and only an income limitation.

So, the need for an Irrevocable Trust is not necessary to qualify for Medi-Cal. Medi-Cal Qualification is only income limits.

In 2024, the countable monthly income must be at or below $1,731 (for an individual) or $2,350 (for a married couple). Countable monthly income is determined by taking your gross monthly and deducting health insurance premiums. If you have a higher income, you may qualify with a “share of cost” (deductible).

Our office Medi-Cal expert can file a Medi-Cal application for you. Call: (818) 241-4238.

IMPORTANT NOTE!!!

Asset limits for SSI remain at:

Single: $2,000
Couple: $3,000
To keep SSI Benefits when expecting an inheritance or a lawsuit settlement, if you are under 65 years old, we can help with a Special Needs Trust and have this money go directly into this trust and for you to keep SSI benefits.

Only Seek Counsel From An Experienced Elder Law Attorney

Do not believe everything you hear about Medi-CAL or Spend Downs from Social Workers, Financial Planners, and CPAs, or try to file a Medi-CAL application on your own, until you have a consultation with an experienced Medi-Cal professional. Timing can be critical!

Assets held in a Revocable Living Trust will NOW in California avoid Probate and Medi-CAL Estate Recovery… But a Revocable Living cannot be used as asset protection against lawsuits or financial elder abuse.

Asset Protection Planning using the Irrevocable Trust should be a critical part of estate planning for all families concerned about protecting real estate and liquid assets from lawsuits or financial elder abuse.

Asset Protection For Seniors Driving Cars

Joseph McHugh, as an Asset Protection Elder Law Attorney, highly recommends advanced planning using the Irrevocable Asset Protection Trust in cases where seniors are healthy and still driving… it is important to protect major assets from lawsuits due the car accidents. Or preventing the possibility of a senior getting coerced into signing away assets by mistake as they get older and have less mental capacity. Our attorney makes sure a responsible trusted family member is established as trustee of this Irrevocable Asset Protection Trust. If properly created in advance (before a Cause of Action – Accident- has occurred) most creditor issues may be avoided. This also will protect assets if they need nursing home care in the future.

We have had elder clients get into car accidents and luckily, they had put most of their assets into the Irrevocable Trust so the only claim from a lawsuit was what car insurance provided and a small amount in their personal checking accounts.

What is an Irrevocable Trust?

There are big differences between a Revocable Trust and an Irrevocable Trust. Basically, the main difference is that a Revocable Trust does not remove assets from your name (Social Security number) and your direct control, therefore these assets will be counted as assets you own and can be used for a court ordered judgement or can be manipulated by outsiders (financial elder abuse can happen).

This means:

In a Revocable Trust or “Living Trust”, personal injury lawsuit or fraudulent outsiders or creditors CAN access assets as they are YOUR ASSETS!
A lien can be placed on a home or bank accounts owned by a Revocable Trust for your debts
A lien cannot be placed on a home or bank accounts owned by an Irrevocable Revocable Trust for your debts or cause of action made after the asset transfers into the Irrevocable Trust.

Who Should Consider An Asset Protection Irrevocable Trust?

Irrevocable Asset Protection Trusts should be established by older adults (or persons facing the need for long term care) who wish to protect their assets (including the family home). Generally, anyone that is considering this type of preplanning needs to have a sense of emotional security, because he or she must be ready to relinquish direct control over his or her assets. Also, if a senior is still driving, it is a good idea to protect the house and other savings from a personal injury lawsuit if the senior causes a car accident!

The control of these assets is turned over to a loved and trusted family member, who acts as trustee of an Irrevocable Trust. The trustee oversees (guards) and distributing the assets in the Irrevocable Trust. Meanwhile, the person needing long term care or help protecting assets continues to have direct control over his or her income, such as social security and pensions, as well as any assets chosen to remain outside the Irrevocable Trust.

Irrevocable Trusts have the benefit of passing assets to heirs (beneficiaries) without requiring a probate. If needed, the Irrevocable Trust can set incorporate special purpose estate planning, such as Special Needs Trusts for heirs that are on SSI or other government programs; or Discretionary Trusts (Spend Thrift Trusts) for heirs that cannot properly manage their financial affairs.

What Are The Steps For Creating Irrevocable Trusts?

Your Irrevocable Trust must have a customized plan suited to your family’s needs and personal objectives. You will be asked a series of questions to determine how the Irrevocable Trust should be drafted to ensure it gives you maximum protection. Some of the questions will be:

Do you need income from the assets after they are placed in the Irrevocable Trust?
What asset controls do you want to retain? Understanding that all assets in the Irrevocable Trust cannot be controlled by you.
Will you appoint a trusted independent third party to have specific authorities to adapt the trust to unforeseen circumstances, such as future changes in the law?
Do you need to draft any special needs protections for your heirs (beneficiaries of the trust) who are disabled or who may have creditor issues or who may be involved in a divorce?
Who are the beneficiaries upon your death?

After you have defined the purposes for the Irrevocable Asset Protection Trust, then your assets need to be IDENTIFIED. We will guide you or your trustee on the appropriate amount of assets to be placed in the Irrevocable Trust.

After a thorough review of the best strategies for your family situation and our fees for the scope of work, we will structure a comprehensive legal plan created specifically to give you (or your loved one) the best care possible, while protecting your family assets.

Our Law Firm is centrally located in Burbank (Southern California); however, our Elder Law Lawyer, Joe McHugh and his wife Kathy McHugh, Triage Director serve many clients throughout the state. They can create required documents and guide families through the entire process via, phone, email and FEDEX.

We are very proud of the many personal and professional referrals we receive from happy clients and colleagues.

Call (818) 241-4238. Or you can submit this form.