I’m going to be talking to you about is the home protection trust. We want to make sure that your home does not have to be sold to pay for your nursing home care costs.
Now there is a government program out there where you can have a home and receive government benefits.
You can receive a loan from the government to pay for your care in the nursing home.
But when you die your home will be sold it will not go to your children and the proceeds from the sale will be used to pay back the government loan you received.
So we want to make sure that doesn’t happen to you.
So once you hit age 50 you should start thinking about what do I have to do to make sure that my house and the future homes that I purchase are not lost paying for nursing home care.
What do we do?
There’s a very easy solution it is while you are alive and competent and not in need of any government assistance to pay for your long-term care costs, whether that be in your home or it is assisted living or whether it be in the nursing home.
Setup a Home Protection Trust
We want you to plan ahead and what we want you to do is set up a home protection trust and then we have you transfer your home into the trust.
Then we have a provision in the trust that allows you to use and occupy the Home.
We also have another provision inside the trust that says and you will pay all the costs associated with the home.
Owned Your Home in Your Name
So it’s just like it was when you owned your home in your name you’re paying the bills and you’re living there and no one can kick you out that’s what’s important.
Home Inside the Home Protection Trust
So here you are now you have your home inside the home protection trust and if you end up going to a nursing home because your home is inside the home protection trust.
The government cannot put a lien on your house they cannot force it to be sold to pay for your nursing home care costs either while you’re alive or at your death.
Home is Protected
Now you have yourself set up so that your home is protected. So very important to have your home protected.
Because without it we run the risk that you go to the nursing home you get government help, you then die that home that you still own will then be sold and the government will get the money.
Advantages of having an inside your home protection trust
Now one of the advantages of having an inside your home protection trust is you may decide you want to sell the house.
So what do you do?
The trust that owns the home sells it and it could keep the cash or it could use that cash to buy you another home and maybe this is the time in your life when you downsize.
Maybe you’re buying a smaller home or even a condo.
The beauty of it is that the next home is also protected. So that you do not have to lose it. So very important.
Now we hope that this little piece of information here on protecting your home is useful to you.
Who should do this
Well, we think everybody 50 or older should think about it but by the time you’re 65, you should really be doing this.
Why is that important to do it
You’re not even sitting in the nursing home because it is extremely difficult once you’re in the nursing home or even once your spouse’s in the nursing home to protect your home.
So the time we need to do it is in advance and the best time to do it we say is five years in advance.
Because then you don’t even have to tell the government that you gave the home to the trust.
Even if you do tell the government about it when you apply for government help they can’t punish you for transferring the home to the trust.
So again we encourage you to do it while you’re young and healthy and this doesn’t have to be your last home.
Because remember your trust could sell the home and buy you another home that you would have the right to use and occupy.