New Jersey trust attorney Christine Matus (https://matuslaw.com/irrevocable-trust-new-jersey-long-term-care/), of The Matus Law Group, has recently published an insightful article titled “How an Irrevocable Trust in New Jersey Can Be Part of Your Long-Term Care Plans”. The article provides an in-depth look at the benefits and considerations of setting up an irrevocable trust, primarily for long-term care planning.

In the first part of the article, the New Jersey trust attorney underscores the increasing need for long-term care as individuals age, and the high costs associated with such care. “Long-term care can be extremely expensive, and nursing home care is not covered by Medicare,” Matus points out. She further highlights the role of Medicaid in helping those who cannot fund their care independently and how an irrevocable trust can play a crucial role in this scenario.

The New Jersey trust attorney goes on to discuss the concept and function of an irrevocable trust in New Jersey. “A trust is a legal vehicle that allows assets to be held by the trust, not the individual, and managed by a trustee who will direct those assets to the beneficiaries of the trust,” she says. She explains the benefits of irrevocable trusts, including tax benefits, protection for disabled dependents, and the potential to overcome asset eligibility requirements set by Medicaid.

The comprehensive article also delves into the particulars of an irrevocable trust, explaining its function and benefits, especially in terms of tax liabilities and asset protection. Matus clarifies the roles within the trust, stating, “Once the creator transfers assets into an irrevocable trust, he or she no longer controls those assets. The trust now owns the assets, and the trustee controls them.”

A range of irrevocable trusts are covered in the article including Bypass Trust, Special Needs Trust, Spendthrift Trust, Charitable Trust, and Life Insurance Trust. Each trust type is examined for its specific purposes and potential benefits, offering readers an understanding of the diverse options available to meet various objectives.

Matus also provides a detailed explanation about the ownership of property in an irrevocable trust. She states, “In irrevocable trusts, the property is exclusively owned by the trust itself. Legally, the property belongs to the trust and is registered in its name.” This clarity is integral to understanding the protective nature of irrevocable trusts and the security they provide for assets.

One of the crucial aspects discussed in the article is how an irrevocable trust helps with Medicaid asset eligibility requirements. Matus details the “spend down” strategy and explains how assets placed in an irrevocable trust are no longer “countable” by Medicaid, a significant advantage for those seeking to qualify for Medicaid benefits.

To further emphasize the benefits of an irrevocable trust, Matus explains why gifting assets to children might not be the best strategy, especially in the context of qualifying for Medicaid benefits. She also outlines the advantages of naming children as beneficiaries of the trust rather than gifting them assets directly.

Having provided a wealth of information about irrevocable trusts, the article stands as a valuable resource for those seeking to safeguard their future, especially in terms of long-term care. Everyone is encouraged to seek professional legal advice and to take proactive steps towards securing their future.

About The Matus Law Group:

The Matus Law Group has been providing exceptional legal services to New Jersey residents for over 20 years. Focusing on estate planning and special needs planning services for both children and adults, the firm is dedicated to assisting families in planning for life, effectively managing disability and death, and preserving inheritances for future generations. The Matus Law Group comprises a team of experienced attorneys who are steadfastly committed to protecting and caring for loved ones with special needs, ensuring the well-being of their clients.

 

Embeds:

Youtube Video:  https://www.youtube.com/watch?v=RWiCnYZEvV8

GMB: https://www.google.com/maps?cid=3241702663730814860

Email and website

Email: [email protected]

Website: https://matuslaw.com/

Media Contact
Company Name: The Matus Law Group
Contact Person: Christine Matus
Email: Send Email
Phone: (732) 785-4453
Address:125 Half Mile Rd #201A, Red Bank, NJ 07701
City: Red Bank
State: New Jersey
Country: United States
Website: https://matuslaw.com/