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Todd Whatley tackles the complex topic of irrevocable trusts in elder law practice, focusing primarily on Medicaid Asset Protection Trusts and when they're appropriate for clients. He draws on personal experience to provide practical guidance on implementing these powerful legal tools correctly.
• Irrevocable trusts require relinquishing control and ownership of assets, making them subject to Medicaid's five-year lookback period
• Many attorneys incorrectly structure these trusts by making the grantor a trustee or beneficiary, which can invalidate the protection in some states
• Medicaid Asset Protection Trusts are generally best for higher net-worth individuals with sufficient assets to cover needs during the lookback period
• Always implement a "cooling off" period before finalizing an irrevocable trust to ensure clients fully understand and commit to the arrangement
• Consider additional trust applications including charitable remainder trusts, Domestic Asset Protection Trusts, and irrevocable life insurance trusts
• Client communication and education are crucial – never recommend these tools without ensuring clients understand the loss of control and benefits
• Evaluate asset types carefully – retirement accounts typically make poor candidates for trust funding due to tax consequences
• Family farms and generational properties often justify irrevocable trust planning even with modest estates
For help implementing these strategies and for coaching opportunities, visit TheElderLawCoach.com or call to schedule a consultation.
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