What are the Different Types of Trusts that Are Available to Me?A trust creates a right in property, which is held by a trustee for the benefit of the trust beneficiary. There are many different types of trusts. The trusts most often associated with Estate Planning are a Revocable Living Trust and a Supplemental Needs Trust.
Revocable Living Trust
A revocable living trust arranges for the management and distribution of property. Most often with this type of trust the grantor is also the trustee and beneficiary of the trust.
A revocable living trust may be appropriate for your Estate Plan, but you should check with an Elder Law Attorney to see if this trust would work for you. A revocable living trust is rarely the best option and does not provide the protections that are available with a Supplemental Needs Trust.
In Washington State, a Revocable Living Trust is not a good strategy to protect assets while obtaining Medicaid. A Revocable Living Trust’s assets are considered available to a Medicaid applicant, which affects Medicaid eligibility. If you have a Revocable Living Trust, we strongly encourage you to see an Elder Law attorney immediately to discuss whether you need to make changes to your Estate Plan.
Supplemental Needs Trust
A Supplemental Needs Trust is designed to protect assets while still allowing an individual to remain eligible for critical governmental benefits. Unlike assets held in a revocable living trust, assets in a Supplemental Needs Trust are not considered countable by Medicaid and cannot be touched by the State.
This type of trust may be created to benefit of another person, including a disabled spouse or a spouse who may become disabled due to illness or advanced age, who needs Medicaid Long-Term Care benefits. A Supplemental Needs Trust can also be created for the benefit of a child or grandchild, while maintaining eligibility for government needs-based benefits.
Determining whether a Supplemental Needs Trust is right for you and your situation can be a complex decision based on a number of factors. Our Elder Law attorneys are knowledgeable about Supplemental Needs Trusts and other estate planning tools that may be suitable for your situation.
As skilled asset protection lawyers, we will provide you personalized legal advice on the best options available to meet your objectives and protect the assets you have accrued over a lifetime. We invite you to learn more about our team here, and read what our clients have to say about us here.
Elder Law Group PLLC has been recognized as one of the fasted growing law firms in the U.S. as an Annual Law Firm 500 Award honoree. Contact us or call (509) 468-0551 (Spokane office), or (509) 579-0206 (Tri-Cities office), for personal, compassionate guidance on Long-Term Care planning, Asset Protection Estate Planning TM, or other legal needs of seniors, the disabled, or vulnerable adults and their families.