Any information on above personal injury settlement inquiry would be appreciated. Thanks.
I was hoping to ask this question during the AMA event with Joshua Rae (august 21-23) but couldn't figure out how to access it on the platform. Anybody else have trouble with access?
I doubt if you can do this, but in some cases with children who are to inherit I know there is a way, if they do not take possession of the money to do a special needs trust.
I think if this is a substantial amount of money then you should consider seeing an elder law attorney which is a better choice anyway than someone selling annuities to elders.
Asset Protection Trusts traditionally are a legal structure set up to enable assets to bypass probate & taxes. It’s estate planning. Trust owns assets; can have homes, land, etc titled in the Trust. Usually financial institutions need for Trusts to have as a baseline over 1M so that there is $ within Trust for investments that “feed” the Trust to pay costs that arise for titled assets. Like your great Aunt had a Trust with her home titled into it Trust but also stocks and oil royalties as well. Stocks & royalties as investments pay for costs (taxes, insurance, maintenance) on house & paid her $ periodically. Auntie died and she did the Trust to go to you as beneficiary so you can stay at the house & you too can get $ periodically. Those stocks “feed” it $ & hopefully Trust does this for your kids. It’s Asset Protection & what intergenerational wealth in the US is based on.
This is the type of Trusts associated with wealth & security.
With Trustees, tax filings, attorneys & financial institutions.
But there are other kinds of Trusts…..
Like SNT = Special Needs Trusts set up for those with disabilities. Done by attorneys or by outreach groups.
Testamentary Trusts - in a will for how distribution of assets to be done.
IFT = Irrevocable Funeral Trusts. Often sold under different names, &
what they seem to be are basically a type of life insurance policy that you buy to have preneed funeral or burial space that is placed into a contract funded Trust drawn upon to pay for funeral / burial once you die. It’s IRREVOCABLE, so once bought, $ is gone completely. The $ goes to the funeral stuff only, so you need it for something else, too frickin’ bad. Most State LTC Medicaid have a maximum $ allowed on IFT. & States can have other restrictions on them as well.
Like TX has 15K max, a specific Goods & Services list and all $ not used MUST escheat (be sent) to the State. It’s an insurance product so often touted as being at no fee, which it is, as insurance policies usually paid via a commission. Ask for in writing - exactly- the commission structure on the premium. You may be surprised how high it is.
PNA trust - Personal Needs Allowance trust. The $ an individual in a NH on LTC Medicaid is allowed to keep from their income each month to use for items not covered by Medicaid (snacks, magazines, beauty shoppe). If NH is their representative payee for SS, PNA $ is required to be placed into a trust account at the NH with interest paid. It’s actually called an “Trust” although it can be a small amount of $. PNA varies by State. Like AL & NC are low at $30 a mo, AZ is high at $137.10. NYS is $50 mo. All other income is a copay as the required SOC share of cost to the NH.
POA does need to be mindful of PNA trust $ as count towards assets. Assets have max allowed per mo & amount depends on your State.
If you’re not sure IF it’s something being touted as a TRUST is ok for LTC Medicaid, that’s something to get clear answers from your moms Medicaid caseworker in advance. If there is an issue, it’s an eligibility problem for her, not for whoever sold you the product.
AND
super important to know difference between revocable versus irrevocable. Could be a huge & costly mistake.