You may already have a traditional trust in place. Typically, individuals have a trust that is revocable and changeable and can help avoid the need for probate or a guardian in the event that you were to suddenly become incapacitated or pass away. However, did you know that this kind of trust does not provide any further protection against your creditors over the course of your life or after you pass away?ThinkstockPhotos-513112628

This critical gap, which is the lack of protection against the rising costs of health and long term care and the potential risk to your non-liquid assets can encourage people to establish an irrevocable trust to hold their assets.

The U.S. Department of Health and Human Services in 2015 identified that the average cost of long term care is $138,000 per person. That same month, Forbes magazine found that it was even higher at $265,000 per person. Many people work hard over the course of their life and expect to have significant wealth and opportunities. Unfortunately, however, this can all be decimated in the event of one long term care problem.

Proper asset protection planning is next critical step for helping a family avoid the rising cost of long term care. It can take several years for asset protection planning to be effective and since it is tailored to use specifically, you need to consult with an experienced asset protection planning attorney as soon as possible.

 

 

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