What is the Difference between Living Trusts & Asset Protection Trusts in California? LA LAW Center in Burbank, CA has Answers!

Each state has its own rules regarding Estate Planning and Medi-CAL (Medicaid in other states). California has rules that allow gifting of assets to quickly qualify for Medi-CAL at the last moments of need. Many have questions about how to qualify and what are the differences between trusts.

A Living Trust is a trust that plans for your death and will help avoid making your family endure a court intrusive Probate procedure. A Living Trust is in your control and listed under your social security number so Creditors and the government count any assets in this trust AS YOUR ASSETS… is not an irrevocable trust and does not protect against nursing home costs or creditor claims.

In order to protect against nursing home costs, an Irrevocable Medi-CAL Asset Protection Trust must be properly drafted, and must be an Irrevocable Trust that has a separate person as trustee. As an experienced Elder Law Firm, LA Law Center is in the practice of Medi-Cal planning, we have experience in helping families undo the damage created by estate planning attorneys (do not understand elder law) that were made to plan for death but not protect assets for nursing home planning.

Medi-Cal planning is the legal process of assigning your property and other assets into an Irrevocable Asset Protection Trust that ensures your assets go to your family (or others that you wish), rather than to pay the private pay rates at a skilled nursing home… especially when Medi-Cal can pay most of this cost. The best time to do Medi-Cal planning is before you need long term care and are in a nursing home.  Preplanning is best when time is on your side… but it is never too late to plan.

One of the most common misconceptions of Medi-Cal planning is that it must be done well in advance of going to the nursing home. We do crisis planning every day to help families with a loved one already in hospital or nursing home that are facing the 100 days of Medicare paying for this care running out.

For a free consultation, call us today (818)241-4238 or visit www.la-lawcenter.com