Sponsored content from Jarvis Law Office

Estate planning and protecting your assets can seem overwhelming, but Jarvis Law Office, which specializes in elder law, will help you navigate the process with ease.

“All of the Jarvis staff are all very friendly, efficient, and quick to respond,” said Linda, a recent client of Jarvis Law Office. “We experienced very satisfying planning, discussion, and comprehensive execution of our future legal plans for our family. The plans were very thorough and informative, especially in areas we were unfamiliar with. We cannot be more pleased with the scope and sequence of our final plans.”

According to Jarvis Law Office, when creating an estate plan, most people write a will, but a will won’t provide the same protection as setting up an asset protection trust.

“Asset protection trusts are a type of trusts that allow individuals to protect certain assets that are primarily going to be non-taxable assets such as a Roth IRA, the equity in their home or money in a

savings account,” said Rae Lemley, director of marketing at Jarvis Law Office.

Their website explains that unlike wills, asset protection trusts offer control and protection for those who hold assets or who will become beneficiaries. Clients can also name decision-makers and guardians as well as protect families from paying costly nursing home expenses.

“The Jarvis team was excellent to work with from intake through to signing,” said Jenny, a recent client of Jarvis Law Office. “I felt they cared about me and my kids, paid attention to details and I never felt pressured.”

Unlike wills, asset protection trusts can take effect while a person is living.

“It will also allow the individual to still have a level of control over those assets,” said Lemley. “They still have access to those funds if needed.”

A trust is a fiduciary relationship in which the person who makes the trust, a parent for example gives a trustee (himself or someone else) the right to hold and control property for a beneficiary, such as the trust maker’s child.

So, while they are alive, the person who made the trust remains in charge of their own assets.

According to the website, they still can buy or sell assets as they have before, and they can change or cancel the trust at any time. This includes selling property, earning income, or making investments.

What is an asset protection trust?

According to the Jarvis Law Office website, an asset protection trust plan offers all the benefits of a revocable living trust plan, but also provides asset protection from a nursing home spend-down, as well as lawsuit protection.

When the time comes, nursing homes can cost up to $168,000 per year or up to $14,000 per month, and home care can cost up to $288,000 per year.

“Assets can quickly be spent when a person requires long-term or nursing home care,” said Lemley. “Trusts prevent people from paying out-of-pocket expenses from a Medicaid spend-down before they enter a nursing home or long-term care establishment.”

The website said with an asset protection trust, people can deed their home into the trust to avoid the five-year Medicaid look-back period. When someone applies for long-term Medicaid, including nursing home services, there is a lookback period in which their assets cannot exceed a certain amount. But if a person puts his assets into a trust, after a period of five years he would not be required to spend down his assets before being eligible for Medicaid.

Another perk of coming to Jarvis Law Office is that it is they can handle the entire process for you.

“With Jarvis Law Office, we have a funding department in-house, so when you set up a trust with us, we then go the next step to work with the banks or the mortgage company to get those assets moved into the trust,” said Lemley. “If you don’t take that step and you don’t move the assets into the trust, then it’s no good.”

According to Lemley, funds in an asset protection trust are also protected from creditors, lawsuits, and other scenarios where someone could try to take your assets.

Asset protection trusts are not only for the wealthy, they are for anyone close to retirement age who wants to protect their assets.

“Typically our demographic for this type of planning is around 62 plus or nearing retirement age,” said Lemley. “They are thinking that they may or may not someday need long-term care, but don’t want to end up completely broke from it. It is beneficial to plan as early as possible.”

Lemley said the typical client has a net worth of around $300,000 comprised of possibly $150,000 equity in their home, $100,000 Roth IRA, and $50,000 in savings.

The website says that rising healthcare costs, as well as unexpected occurrences as people grow older, can become devastating to a family’s plans for their retirement years. Trusts help people protect their assets, so they can be passed along to their children and other beneficiaries.

And, even if you’re in good health, it’s important to start planning now.

Jarvis Law Office offers a free 15-minute call to discover how setting up an asset protection trust can benefit you and your family. The firm also offers webinars and in-person workshops on trusts.

For more information on asset protection trusts from Jarvis Law Office, visit www.jarvisfirm.com/areas-of-practice/lancaster-ohio-asset-protection/