Did you know that the average cost of nursing home care in Indiana exceeds $7,000 a month? For many married retirees, a single long-term care stay can quickly drain a lifetime of savings. Retirement accounts, home equity and personal savings often disappear within months, especially without protection. Many couples do not realize that the right legal tools can help them avoid losing everything they have earned.
How trusts can shield what you have earned
Many retirees believe Medicare pays for long-term nursing care. It does not. Medicaid can, but only after most of your assets fall below strict financial limits. The home you worked to pay off, the savings you built and the legacy you hoped to leave may all be at risk.
An irrevocable trust offers a path forward when created in time. You transfer ownership of specific assets into the trust, which removes them from Medicaid’s financial review. That step must happen well in advance—at least five years before applying.
With a properly structured trust, you can:
- Preserve your home: If your spouse moves into a nursing facility, Medicaid may count your house as a resource. By placing the home in an irrevocable trust five years earlier, you keep it protected. Your spouse receives care, and you remain in your home without threat of forced sale.
- Protect savings for your spouse: If you hold $120,000 in retirement accounts, Medicaid rules could require you to spend most of it. A trust can protect those funds and help your spouse manage bills, food and medical needs without depending on emergency help or selling property.
- Maintain control within limits: You cannot take the assets back, but you still make the decisions. You name the trustee and choose who inherits the assets later. This helps preserve your estate and ensures your plans move forward without leaving everything exposed.
Trusts require forethought. However, for many couples, they offer a practical way to prepare for the unknown while keeping their and their family’s future secure.
Preserve your legacy the smart way
You spent decades building a stable life. You should not lose it all to one health crisis. With the right planning, a trust can help protect your home, savings and peace of mind. For many married couples with modest assets, it can mean the difference between starting over or staying secure.