On Monday, October 17, ElderCounsel released a new document set in ElderDocx, EC Medicaid Family Protection Trust™. This document set creates an asset-protected trust for the grantor's family. Below are a few frequently asked questions we've received.
What is the EC Medicaid Family Protection Trust?
The EC Medicaid Family Protection Trust is an irrevocable trust with certain options preselected to provide creditor protection for the grantor and the family, yet works for Medicaid planning. Many clients don't want to focus on their own need for care in the future, but they are concerned about passing a legacy on to their loved ones without interference from creditors—both known and unknown. The EC Medicaid Family Protection Trust addresses this concern, and makes drafting such a trust simple—we’ve preselected many of the answers for you.
Why is this a separate trust?
Members often report back that clients aren’t ready to talk about Medicaid or the possible need for long-term care, and therefore aren’t interested in having a MAPT drafted for their benefit. The EC Medicaid Family Protection Trust gives the attorney a different goal for the client—asset protection for their family and the ability to provide a legacy regardless of any creditors that could pop up later. And it provides the added benefit of protecting the client’s assets if the need for Medicaid ever arises. It puts the focus on a positive goal, protecting a legacy for the client’s loved ones, rather than focusing on a negative, the possible failure of the client’s health and subsequent need for Medicaid.
What options are preselected in the EC Medicaid Family Protection Trust?
We have preselected certain options that are critical for beneficiary protection such as naming a distribution trustee, and limiting how assets will pass at the grantor’s death to ensure those assets remain in trust and protected from the beneficiaries’ creditors. We provide a full explanation in the EC Medicaid Family Protection Trust document set help screens.
What if I don't want one of the preselected options?
We make it easy for you to change to a Medicaid Asset Protection Trust so that you can change any of the preselected options. Just remember that you may not be achieving the goal of asset protection for the family by changing the preselected options.