Is a revocable living trust a good instrument to protect my assets from the IRS during my lifetime and to designate a beneficiary upon my death?
I care for my disabled brother. He is in independent living but I manage all of his finances and health care. His only income is SSI; his medical is a Medicare Advantage plan with Medicaid. Is a revocable living trust a good instrument to protect his assets (what little he has) from the IRS during his lifetime and to designate a beneficiary upon his death?
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I don't think it's really needed, honestly. An irrevocable trust will cost $3–7K, depending on location. He can do the same thing, essentially, with titling. So anything joint, with a beneficiary, that terminates on death or is payable on death is outside of probate or a trust. I'm not seeing the assets to warrant the expense.
The $20K could go into a special needs trust, but that's also the same type of cost. It can only be used for certain very limited things. He cannot get the cash. Protecting things at this point is hard because he's already getting the benefits.
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I care for my disabled brother. He is in independent living, but I manage all of his finances and health care. His only income is SSI; his medical is a Medicare Advantage plan with Medicaid. Is a revocable living trust a good instrument to protect his assets (what little he has) from the IRS during his lifetime and to designate a beneficiary upon his death?
Lexi, Chatbot
I understand your concern for your brother's financial well-being. Have you already set up a power of attorney to manage his finances and health care decisions?
Yes, I have POA and Health Care POA & Surrogate.
Lexi, Chatbot
Does your brother currently have a will in place to designate beneficiaries for his assets upon his passing?
He only has a Living Will, which doesn't have beneficiaries.
Lexi, Chatbot
Is there anything else the Estate Lawyer should know before I connect you? Rest assured they’ll be able to help with asset protection.
He has never been married and has no children. He does not own any real estate or anything else of real value. He will be inheriting about $20K from our father's estate later this year and I want this protected from any government agency.
StephenH129
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StephenH129
I don't think it's really needed, honestly. An irrevocable trust will cost $3–7K, depending on location. He can do the same thing, essentially, with titling. So anything joint, with a beneficiary, that terminates on death or is payable on death is outside of probate or a trust. I'm not seeing the assets to warrant the expense.
The $20K could go into a special needs trust, but that's also the same type of cost. It can only be used for certain very limited things. He cannot get the cash. Protecting things at this point is hard because he's already getting the benefits.
Should bank accounts that are joint use his SS number or the joint owner's?
StephenH129
Joint owners or a POD (Payable on Death) beneficiary. Either works. It just needs to be established during his lifetime. SSA will pay the last month and pull anything back if it is unearned. So they know once there is a death certificate. Funeral homes normally let them know.
Thank you for your time and advice.
StephenH129
Did you have any other questions or concerns? Do you need any clarification on what we have discussed?
That is all. Thank you, Stephen.
StephenH129
Sounds good. Happy to help. Thank you very much. Take care now and be well!
StephenH129
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