Protecting Your Assets With Skilled Elder Law Guidance
A national debate on the high cost of end-of-life care has heightened awareness of the inordinate amount of money that is spent on health care in a person’s last months of life. As “60 Minutes” reporter Steve Croft stated in a story on the topic, “Modern medicine has become so good at keeping the terminally ill alive by treating the complications of underlying disease that the inevitable process of dying has become much harder and is often prolonged unnecessarily.”
Much of the cost is covered by the government. Estimates show that more than 27 percent of Medicare’s annual budget goes to care for patients in their final year of life. However, elder individuals and their families can deplete the bulk of their own hard-earned assets on assisted living and long-term health care late in life if they do not plan ahead.
Elder Law And Asset Protection Lawyer In Essex County
At the Law Offices of Nelson Chang, I help my clients in Saugus and surrounding communities protect their assets through the smart use of estate planning tools, including:
- Long-term care insurance
- Trusts
- Conservatorships and guardianships
- Gifting strategies
- Property transfers
- Tax planning
- Medicaid planning
I will work with you to ensure that your assets are inherited by your loved ones and not spent down on assisted care or swallowed up by creditors and taxes.
I have counseled Massachusetts residents on estate planning and asset protection for nearly four decades. I emphasize a personalized approach and take the time to understand the unique aspects of your situation in order to develop a strategy that aligns with your goals.
FAQ: Asset Protection In Massachusetts
Safeguarding your property and financial security requires a thoughtful, practical approach. The following answers offer guidance so you can understand how certain tools work and where additional planning may be necessary.
Does a revocable living trust shield my assets from creditors?
A revocable living trust does not protect assets from creditors in Massachusetts. Because you retain full control over the trust while alive, including the ability to amend or revoke it, its assets are considered your own. Creditors may reach them and the state Medicaid program (MassHealth) will count them as resources when evaluating eligibility for long‑term care benefits.
A revocable trust can still be valuable for probate avoidance and privacy, but it is not an asset protection tool. Individuals who need creditor protection or long‑term care planning typically consider irrevocable trust structures, which limit access and control in exchange for stronger legal protection.
What is a “life estate,” and how does it protect my assets?
A life estate is a form of property ownership. It allows you to retain the right to live in or use the home for the rest of your life while transferring future ownership to another person, known as the remainderman. This arrangement can help ensure that the property passes directly to your chosen beneficiaries without going through probate.
A properly structured life estate may also protect against certain claims, including some long‑term care recovery efforts, because the remainder interest is no longer part of your probate estate. However, a life estate does not shield the property from every type of claim, and the life tenant still has responsibilities such as paying taxes and maintaining the property.
Is my primary residence protected from nursing home costs in Massachusetts?
A primary residence may receive certain protections under Massachusetts law, but they vary depending on who is seeking payment and when the claim arises. Public programs like MassHealth may treat the home as a noncountable asset while you are living in it, yet they can pursue recovery after your death unless an exemption applies.
Private nursing homes generally must follow standard creditor procedures and may be limited by tools like a Declaration of Homestead. Strategies like life estates and irrevocable trusts can also help preserve the home from claims. They must be established well before long‑term care needs arise due to strict look‑back rules and the potential loss of certain rights once in place.
Meet With An Experienced Saugus Asset Protection Attorney
The laws regulating Medicaid and how to protect your personal assets are complex and constantly in flux. The best first step to putting a comprehensive plan in place is to schedule a free, no-obligation consultation. I will answer your questions and recommend the best course of action.
Call 781-816-8877 or email me to schedule an appointment. From my office in Saugus, I offer estate planning and asset protection guidance to clients in Beverly and throughout Essex County and the North Shore.