Trusts
I am thinking of putting my home in an irrevocable trust to avoid having to self pay for nursing home care should either my wife or myself need it. We are both in good health and 70 years old. Through our taxes we pay we have helped pay for others over the years so our thought is now it’s our turn for someone else to pay for us should we ever need it.
Other than losing control over our home and the look back period wondering if there are other drawbacks we are not thinking of or is there another way to achieve avoiding draining our finances and ending up with our children not inherently our home ( worth approx. 300,000).
Thank you.
Terry Says
Well, you’re operating on a lot of misconceptions — so much so that I barely know how to start.
First of all, you don’t want to rely on Medicaid to pay for your nursing home care if needed! Or put your spouse in a Medicaid-funded nursing home. There are fewer and fewer workers to change bedpans and diapers. Instead, you should consider buying long term care insurance, perhaps with money from your IRA.
Read this: https://www.terrysavage.com/long-term-care-insurance-a-creative-way-to-pay/
Second, you need a trusted fee-only advisor to work on your entire financial and estate plan. Read this: https://www.terrysavage.com/pam-krueger-wealthramp/
Did your parents leave you an inheritance?? If you raised your kids right, they’ll want you to live a comfortable retirement, which might require using your home equity through a reverse mortgage if you live long enough. The best inheritance you can leave your children is their own ability to manage their money. Inspire them to save through their retirement plans at work.
