Many people believe that only the elderly should create trusts, but this is a myth. Trusts can be very helpful in protecting your assets during your lifetime in case you require Medicaid to cover your nursing home care since other medical insurance will not pay for long term care. However, to protect the maximum value of your assets, you’d need to have a trust in place and would need to have transferred assets into the trust at least five years before you need to qualify for Medicaid. You don’t know when you may need a nursing home, so you should act early to put plans in place.
Trusts can also be a key part of your legacy plan and can facilitate the timely transfer of assets to your loved ones while also helping you to avoid estate tax. Since you don’t know when something could happen to you, it is a good idea to make a trust early so you have the peace of mind of knowing your assets and family are as protected as possible.