Irrevocable Trusts have the additional benefit of passing assets to heirs (beneficiaries) of without requiring a probate. If needed, the Irrevocable Trust can set incorporate special purpose estate planning, such as Special Needs Trusts for heirs that are on SSI or other government programs; or Discretionary Trusts (Spend Thrift Trusts) for heirs that can not properly manage their financial affairs.
Currently there is no waiting period for the transfer of assets to an Irrevocable Trust in the California Medi-CAL rules, as long as the asset reallocations are strategically planned and executed within the Medi-CAL Stacked Gifting rules.
We are waiting for the DRA (Deficit Reduction Act) to be adopted by California, which is expected to require California to have a waiting period of more than 2 years after a transfer. When the DRA is adopted we expect the stacked gifting to not be allowed. There will be other options for asset protection but it will not allow the amount of asset that we can currently protect. So it is a good idea for anyone thinking they will need Medi-CAL in the next 5 years to help pay for long term care in a nursing home to do pre-crisis planning NOW! This means setting up an Irrevocable Trust and transferring the bulk of asset into this trust to start the timeline as soon as possible.
At this moment we can help you set up an Irrevocable Trust and transfer assets into this trust. This process will help you qualify for VA and Medi-CAL benefits within a short period of time (the time it takes to make all transfers and stacked gifting processes guided by our staff.
We are passionate about helping families preserve their assets with the least amount of time and trouble. We offer free consultations to seniors and their adult children.
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