Can a spouse leave their assets to a Trust or Family Limited Partnership as a way to provide asset protection from incapacity of the surviving spouse?
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Can a spouse leave their assets to a Trust or Family Limited Partnership as a way to provide asset protection from incapacity of the surviving spouse?
My father is showing early signs of dementia. My mom would like to transfer most marital assets into her name, and then priovide in her will for those assets to transferred to a trust or some other vehicle that would allow my father the benefits of the assets, but protect them from his incapacity as far as decision making (protect against scmas) and long term care costs.
Asked on June 25, 2012 under Estate Planning, Florida
Answers:
Brad Micklin / The Micklin Law Group
Answered 11 years ago | Contributor
Yes, a family limited partnership or a trust is a good vehicle for asset protection and estate planning purposes. You must be aware and take cautions against the five-year look back for Medicaid purposes. A transfer will be considered fraudulent and reversible if it is within a five-year period of the person needing 24 hour nursing or medical care.
You should speak to experienced estate planning attorney to ensure proper steps are taken so that it is clear the purpose was estate planning and not asset protection.
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