The Definition of Estate Planning:
“I want to provide for myself and my loved ones during my lifetime, and upon my incapacity or death give what I have to who I want, the way I want, when I want, and if I can save every last fee, tax or court cost possible.”
The advantages of using Trusts are: 1) Put conditions on how and when your assets are distributed after you die; 2) Reduce gift and estate taxes; 3) Distribute assets to heirs efficiently without the cost and publicity of probate court. Probate can cost between 5% to 7% of your estate; 4) can better protect your assets from creditors and lawsuits and can name a successor trustee, who not only manages your trust after you die but is empowered to manage the trust assets if you become unable to do so.
The Family Protection Trust is an irrevocable trust that provides creditor protection for the Grantor (person setting up the Trust) and the family, yet also works for Medicaid Planning. For those that are concerned about passing a legacy on to their loved ones without interference from creditors – both known and unknown. This Trust also provides the added benefit of protecting your assets if the need for Medicaid ever arises.