An asset protection trust is used to protect assets from the nursing home should you or your spouse need long term care in the future. When properly funded, this type of trust can provide nursing home protection within 5 years of an asset being owned by the trust, as well as probate avoidance.
Although you do have to give up some control with an asset protection trust (you cannot be the trustee or beneficiary of the trust), you get to say who is. You also maintain the ability to make changes to the beneficiaries of the trust and the trustee.
According to the US Department of Health, approximately 70% of Americans will need Long Term Care of some sort during their lifetime. The average length of a nursing home stay is 3 years.
The Average Cost of Long Term Care
Nursing Home $7787/month
Assisted Living $5294/month
In-Home Care $20,440/month
The High End Cost of Long Term Care
Nursing Home $15,000-$18,000/month
Assisted Living $7413/month
In-Home Care $20,440/month
