Protecting Your Assets From The Cost Of Nursing Home Care

Your irrevocable trust will protect the trust assets should you or your spouse ever apply for MassHealth nursing home benefits. MassHealth will only consider the trust assets to be “non-countable” if your access and rights to the trust property are limited. Please review this form carefully so that you and the trustee understand how the trust will work and your obligations and rights to the trust property.

Irrevocable

The enclosed trust is irrevocable, meaning that you cannot change it. You have no right to demand that the trust assets be returned to you. The trust does, however, contain language which allows you to appoint a new trustee. The trust also gives you a power of appointment. This means that you can change the interests of the beneficiaries upon your death by changing your will. Once you place an asset into your irrevocable trust you no longer own it, the trust does. However, you can still benefit from the trust asset in many ways.

Principal and Income

By the terms of the trust, none of the trust principal can be paid to you under any circumstances. This is critical in order to make sure that the trust assets are protected from MassHealth. Think of your trust like a locked safe. Although assets placed into the trust must remain in the trust, they can be sold. For example, if real estate is placed in the trust and it is subsequently sold, the proceeds from the sale must remain in the trust. Likewise, the trustee could be use the proceeds to purchase a new home for you. However the new home would be titled in the name of the trust.

You also have a continuing right to live in real estate owned by the trust. Additionally, the interest and dividends earned on the trust property or rental income can be paid out to you. Because you no longer own the property held in the trust, you will most likely not be able to mortgage or take out an equity loan on the property.

An attorney well versed in Irrevocable Trust Law in Boston is invaluable when making these decisions.