Irrevocable Trusts
An irrevocable trust is an estate planning document where assets are permanently transferred to a trustee, removing them from the original owner’s control for purposes of asset protection or qualifying for government benefits.
Asset Protection with a Trust
Safeguard Your Resources
Limited Control With Protected Assets
An irrevocable trust is a type of trust that cannot be changed or canceled without court approval or the agreement of all interested parties. It is often used to protect assets by placing them under the control of a trustee.
There are two main types: one that benefits the person who created it and one that benefits someone else. The second type is more common, as it removes the creator’s ability to use the assets and helps secure them for the future.
By placing assets in an irrevocable trust for someone else, the original owner gives up ownership, which can protect the assets and in certain instances also ensure future eligibility for government programs.
Let our knowledgeable attorneys educate you on irrevocable trusts.
Sheltering Assets
Creating the Proper Trust
Irrevocable trusts are especially useful in estate planning, Medicaid planning, and defense strategies. Because the assets are no longer owned by the original person, they are generally protected from creditors and lawsuits. This makes irrevocable trusts a powerful tool for individuals looking to preserve wealth or qualify for government benefits without spending down all of their resources.
An irrevocable trust to preserve wealth and protect from creditors removes assets from your ownership, placing them in a trust so they are shielded from legal claims and can be passed on securely to beneficiaries.
An irrevocable trust for Medicaid asset protection transfers ownership of assets to a trust so they are not counted for Medicaid eligibility after five years, helping preserve those assets from being used to pay for nursing home care.
Guidance from an Attorney
Have an attorney assist you with an irrevocable trust.
Transferring assets to an irrevocable trust takes away your control and should only be done when working with an experienced attorney.
Nursing Home Planning
Irrevocable Medicaid Asset Protection Trust
An Irrevocable Medicaid Asset Protection Trust (MAPT) is used to move assets out of your name so they won’t be counted when you apply for Medicaid, but the transfer must be made at least five years before applying. This is because Missouri’s nursing home Medicaid program, called Vendor MO HealthNet, has a five-year look-back period and will check for any gifts or transfers made within that time.
With careful planning, you can protect your assets for your family rather than using them to pay for long-term care. When you transfer assets into a MAPT, you give up direct control, and the trustee takes over managing them. However, using a trust is safer than giving assets directly to someone, because it shields the assets from their creditors and allows for shared management if you appoint more than one trustee.
Work with our attorneys to plan in advance for nursing home care.
Contact Us to Schedule a Consultation
We help with your irrevocable trust needs. Our team consists of attorneys skilled in asset protection trusts as well as general estate planning.
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