Will my Revocable Living Trust protect my assets from nursing home costs?
A revocable trust is an important part of any estate plan that is designed to protect your family's assets from nursing home costs, but by itself will not protect your assets. Trusts are the preferred way to protect assets, but the types of trusts that are used for this purpose are irrevocable trusts that hold assets you have given away. Because irrevocable trusts remove assets from your direct control it is not generally recommended that you transfer your assets to them until it is reasonably likely you will need this type of planning. Unless you anticipate the need for nursing home care within the next eight to ten years, the preferred way to plan is to set up a revocable trust along with powers of attorney. This provides that if you are unable to implement your own nursing home planning in the future, someone will be designated to do so for you.