When it comes to estate planning, one of the most common desires people express is the need to maintain control over their assets while ensuring those assets are protected and ultimately passed on to their loved ones. This concept was highlighted during a recent workshop when Cheryl, a participant, emphasized, “People want to maintain control.” It’s a critical aspect often overlooked in discussions about estate planning, but it’s one that deserves attention.
Many of us have worked hard to accumulate our assets. We’ve saved, sacrificed, and made tough decisions along the way. Whether it’s savings, a retirement account, or a home, these assets represent not just financial security but also the story of our lives. Naturally, we want to enjoy our retirement without stress, knowing that our future is secure. And after we’re gone, we want whatever remains to go to our loved ones—not to taxes, creditors, or nursing homes.
However, life is unpredictable. Statistics show that many of us will need long-term care at some point. Planning for this possibility is essential, yet it often brings up fears about losing control over our assets. The key is to strike a balance between maintaining control, and protecting what we’ve worked so hard to build.
Understanding Control in Estate Planning
Control in estate planning boils down to who makes decisions about your assets and how those decisions are made. Documents like wills, trusts, and powers of attorney are tools that manage this control. For instance, a power of attorney allows someone else to make legal and financial decisions on your behalf if you’re unable to do so, effectively shifting control when necessary.
When discussing asset protection, many people worry about losing control, especially when they hear terms like “irrevocable trust.” The word “irrevocable” often triggers anxiety, because it’s mistakenly associated with permanence and loss of control. Be assured that it’s not necessarily the case.
Maintaining Control with Asset Protection Trusts
One of the most effective ways to protect assets from long-term care expenses is through an irrevocable trust, specifically an asset protection trust. Contrary to popular belief, an irrevocable trust doesn’t mean you’re giving up all control. You can still retain significant control, depending on how the trust is structured.
For example, you might serve as a trustee or co-trustee, or retain a power of appointment, which allows you to change beneficiaries. You could also reserve the right to change trustees. These elements of control can make irrevocable trusts much less intimidating and more flexible than they initially appear.
However, to protect assets effectively, you must give up something—and that’s access, not control. If you can’t access the assets, neither can creditors or Medicaid. For instance, putting your home into an irrevocable trust might mean you can’t sell it and pocket the cash. However, you can still live in your home and it will be protected from being claimed for long-term care costs. This will ensure it goes to your beneficiaries when you pass away.
The Importance of Proper Planning
Proper estate planning requires you to have a comprehensive understanding of the tools available, so you can use them to protect your assets without sacrificing control. That’s why education is crucial. By learning about estate planning through workshops and consultations, you can make informed decisions that align with your goals.
At our law firm, we prioritize education. We offer free workshops to help you understand your options, such as wills, trusts, and the differences between revocable and irrevocable trusts. Our goal is to equip you with the knowledge you need to protect your assets while maintaining the control that’s important to you.
Estate planning is not just a transaction; it’s an ongoing process that evolves as your life changes. We encourage you to stay informed and keep your plan up to date. This will ensure that you remain in control of your assets so you can protect your legacy for the future.
To learn more, we encourage you to register for and attend one of our upcoming workshops. They’re free, informative, and designed to help you navigate the complexities of estate planning with confidence. Visit sechlerlawfirm.com/workshops
