Trust documents
After my husband died, I did a trust and everything financially I do is under the trust as my two children are the beneficiaries of my trust. If I become incapacitated and my house is under the trust and need to be put in a nursing home, Is the nursing home allowed to take the value of the house if my children have to sell it to pay for the nursing home if I become a ward of the state? I also have a Will and Power of attorney medical and financial which one is medical and one son is Financial. Is there a way to protect my homes assets that will not be taken over by a nursing home if my life goes into that direction? Thank you
Terry Says
If you need to go into a nursing home, you’ll likely have enough money to pay for a year or two. Then if you can’t continue to pay, Medicaid will pay (if the facility accepts Medicaid, so choose one that will if you eventually might need it). The state will be able to place a lien on your home — unless one of your adult children is living there as a residence.
And after your death, the state may be able to pursue the asset (your home) for reimbursement. So, yes, eventually the home may be used to pay for your care. That’s why people buy long term care insurance — to protect assets for their children.
A revocable living trust does not protect against creditors.