How a Trust Can Protect Your Assets from Nursing Home Care Costs

The cost of a nursing home can be almost unfathomably high. A private room in a nursing home in Pinellas County can run in excess of $100,000 each year. Nursing home costs can quickly eat away at a person’s life savings. The good news: There are options available to protect your assets. A trust can be a very valuable tool. Within this article, our St. Petersburg estate planning attorney explains how a trust can be used to protect your assets from the risk of future nursing home care costs.

Why Medicaid Eligibility Drives Asset Protection Planning

Here is the key thing to know about long term care planning: Medicare does not cover nursing home care costs except only in very limited circumstances. Instead, Medicaid is the program that provides public support. Notably, Medicaid is a means-tested program. To qualify for long-term care benefits in Florida, an applicant must meet both income and asset limits. Countable assets generally include cash, investments, and non-homestead real property. Certain assets receive protection, but many do not. A proactive approach can make the difference between.

How an Irrevocable Trust Can Help to Shield Assets from Nursing Home Costs in Florida

An irrevocable trust removes assets from the grantor’s legal ownership. Once properly funded, those assets no longer count toward Medicaid eligibility, provided the trust complies with federal and Florida Medicaid rules. The grantor cannot retain control or unrestricted access. If the grantor can revoke the trust, demand distributions, or direct use of principal, Medicaid will treat the assets as available. A compliant irrevocable trust limits access by design.

Note: There is a five-year lookback rule for Medicaid eligibility. In other words, assets transferred into a proper irrevocable trust at least five years before Medicaid is needed (to cover a nursing home or other long-term care) are protected. However, assets that are not transferred in a timely manner could still be exposed.

The Home, Homestead Rules, and Trust Planning

Florida homestead receives special treatment under Medicaid rules, but that protection has limits. Equity caps apply. Estate recovery remains a concern. Placing a home into a properly drafted irrevocable trust can protect it from post-death recovery while preserving the right to live there during life. The trust must restrict sale proceeds and limit beneficiary access during the grantor’s lifetime. A top Florida asset protection attorney can help you navigate the homestead exemption.

Speak to Our St. Petersburg, FL Estate Planning Lawyer for Immediate Help

At Fisher & Wilsey, P.A., our St. Petersburg estate planning attorney is standing by, ready to protect your rights and your interests. If you have any questions about how a trust can be used to protect your assets from nursing home costs, we are here to help. Please do not hesitate to contact us today to set up your confidential initial appointment. We provide estate planning and asset protection services in St. Petersburg. Pinellas County, and throughout the wider region in Florida.