Hello and welcome back to Senior Life
Advisor. My name is Shabrei Parker and today I’m going to teach you about trusts.
Particularly, what is a trust, how does it work, and what are some common types that you could incorporate into your estate plan.
So, what is a trust? A trust is a legal entity that is created to protect and
preserve your assets. A trust works by placing the custody and care of your
assets in a third party, in a fiduciary capacity, and that person is called a
trustee. Common types of trusts include the Medicaid Asset Protection Trust. This
type of trust is used to preserve a person’s eligibility to Medicaid without
depleting their assets in the event that they need to move into a nursing home or
they need to have skilled nursing staff move into their home. Similar to that is
a special needs trust. A special needs trust is used for people who have
physical or mental disabilities. It allows for them to maintain their
government entitlements while also ensuring that there is a vessel from
which they can be taken care of. And then, there is the revocable living trust. This
trust is what it sounds like. It’s one that’s created during your lifetime where you can place assets into and out of the trust. It’s very helpful in
separating your business from your personal assets. Because the preservation of generational wealth starts today, I encourage you to incorporate one or more
of these trusts into your estate plan. You can find out more at seniorlifeadvisor.com or you can consult an attorney. But, until next time, be well.