PODCASTEpisode 13 – Asset Protection Trusts & Protecting Your Home
You've heard friends and neighbors say "you need a trust to protect your house from the nursing home," but is that really true? What are the real pros and cons of Medicaid asset protection planning?
In this episode of Into the Woods, host Dave Shaffer welcomes back attorney Kelly Gusmano along with new guest Hannah Mills to explore the details of asset protection trusts and Medicaid planning implications. They break down what makes these irrevocable trusts different from other estate planning tools, explaining how they work as a "lockbox" for assets you don't need immediate access to while still allowing you to live in your home and receive income from trust investments. Kelly and Hannah discuss the critical five-year lookback period, the strict asset limits for Medicaid eligibility, and why nursing home costs of $18,000-20,000 per month make this planning so important. They also compare trusts to simpler alternatives like life estate deeds, explaining when each option makes sense based on asset values and family circumstances. The episode features a humorous "unreleased" Home Improvement episode where Tim "The Tool Man" Taylor learns important lessons about why getting proper legal counsel beats taking advice from your neighbor Wilson—even when Wilson means well.