Safeguarding the Family Home Through Trusts, Life Estates, and Asset-Protection Tools

It’s important to consider asset protection tools when thinking about or conducting estate planning.

Trusts and Life Estates are Two Asset Protection Tools that Can Be Very Beneficial in Estate Planning

For so many families, home is more than merely a physical structure. Home represents both financial security and emotional legacy.

However, the potential need for long-term health care can place your home at risk. Proper planning in place can help mitigate this risk. Fortunately, asset-protection strategies such as trusts, life estates, and other legal tools can help safeguard your family home. Thus, ensuring it remains within the family even if future care costs arise.

The Irrevocable Trust

One common estate planning approach is the use of an irrevocable trust. With an irrevocable trust, you transfer ownership of your home into this special account. Consequently, the property is no longer considered part of your individual personal assets. This means it may be protected from being used to pay for long-term care costs or nursing home expenses. However, the transfer into the trust must occur at least five years before applying for Medicaid. This way you avoid penalties under their strict look-back rules.

Life Estate

A life estate is another valuable tool. In this arrangement, you, the ‘life tenant,’ retain the right to live in the property for the rest of your life. Then, ownership automatically passes to designated heirs upon death. This ensures continued residence while avoiding probate. Once again, the life estate needs to be created within the required look-back period. This protects the home from Medicaid recovery after your passing.

Other Estate Planning Asset Protection Tools

Other estate planning strategies, such as transfer-on-death deeds or homestead exemptions, can further enhance protection depending on state laws. However, it is important to work with an experienced estate planning attorney to tailor these tools to your individual circumstances. Additionally, to ensure compliance with Medicaid and tax regulations. Some tools like the homestead exemption, if not established correctly, can override a will’s instructions. Thus, leading to automatic transfer of the home under intestacy laws.

Preparing responsibly for the possibility of long-term healthcare needs allows families to preserve their most cherished asset – the home.

Since it is impossible to know if or when long-term healthcare may be needed, the sooner you plan for it the better. To get started, give my office a call today at (470) 235-7868.

Looking to find an experienced estate lawyer in the Georgia area who is skilled in asset protection and estate plan preparation? Shannon Pawley is an attorney in Georgia with expertise in estate planning and asset protection. Shannon can provide assistance with creating an estate plan to include making a will and how to establish a trust properly. If you have questions about asset protection or questions about making an estate plan, reach out to Shannon and she will be glad to help answer all the estate planning questions you might have!

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21:58 07 Feb 24

Shannon and her team were great. Went in for a consultation and got my money worth. She explained and made sure we understood. I will be using them in the future.

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18:55 17 Dec 23

We had excellent service from Shannon and her team, they are true professionals and helped us and explained every step in the process. We highly recommend The Estate and Asset Protection Law Firm.

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Stephanie Deal

15:22 07 Jul 23

My father and I recently used the estate, an asset protection, law, firm for new wheels, new, power of attorney’s, and a creation of a trust. Brooke and her entire team could not have been more helpful and more professional! We loved working with them, and they took everything seriously therefore I didn’t have to worry about a thing. I highly recommend everyone at the law firm.

Barry Amos

01:22 01 Jul 23

Great firm. Had answers to all our questions and explained everything clearly. Never felt rushed to make a decision Could not ask for a better experience. Every one we dealt with was professional and knowledgeable. We highly recommend this firm for estate planning.

Lee Jay

21:30 28 Jun 23

Shannon provided invaluable information regarding a family estate matter. Although her firm did not quite fit our immediate needs, the consultation was informative and extremely HELPFUL! Shannon clearly explained what our next steps should be and offered to assist if we had any questions along the way. Her expertise and willingness to help puts her in a league of her own!

Alice Guppy

02:01 23 Jan 23

Shannon and everyone at The Estate and Asset Protection Law Firm are professional, very knowledgeable, and a pleasure to work with. They answered all our questions in great detail and the plan they developed for us is exactly what we need to protect our assets and estate as we age especially with my husband's health issues.

Lynn McKibbin-Moore

23:09 24 Feb 22

My husband has dementia. This firm has been patient, kind and professional while we went through a move from a house of 37 years in to a condo to be closer to my daughter and her husband. (Miami to Atlanta). There was also a wedding. All in 6 months.
We now have a trust, power of attorney. Wills for my daughter and her husband and more. All at a fair price. I could not recommend higher.

Tammy Lee

22:03 29 Jan 22

Shannon Pawley and her team are exceptional at helping families navigate tough situations. We began working with her upon finding out my father had Stage 4 kidney cancer. His decline was more rapid than expected.
Attorney Pawley and her entire team expedited paperwork that allowed me to focus on my father’s care, make decisions that suddenly needed to be made for him medically and financially, and has allowed me the ability to focus more on grieving and less on legal matters upon his passing.
It is obvious she is knowledgeable about the best ways to navigate estates to protect the assets for the owners and their loved ones. It is just as obvious that she is passionate and has true heart for what her clients go through.
We will be using her for own estate needs, and I recommend her expertise to everybody I can.
This service is worth every penny we paid as it has saved us more money and time than I could imagine.

H Jessie Brewer

18:26 18 Nov 21

Attorney Shannon Pawley and paralegal Alexis McCoy are legal professionals that my wife and I highly recommend. Their grasp of the Georgia law pertaining to Medicaid assistance and the interworking's of the State department is exceptional. Additionally, their client-attorney relationship skills are excellent. We wouldn't hesitate to use this law firm again should the need arise.

Dawn Hardy

15:06 13 Nov 21

Shannon and her team are the best! They listened to my needs and provided the best advice. They are patient and professional as well as personable, they didn't make me feel like I was just another client. Highly recommend!