S 3 EP 35 The Spousal Protection Trust and How to Fund It

As part of Academy weekly Office Hours, Darol answers the following questions asked by a Family Leader: “what happens once you have everything protected in a trust? Is it readily accessible to the surviving spouse or the person in charge of the estate?”

Darol answers this question in-depth and goes further by explaining why the Spousal Protection Trust is what most couples need, its advantages, and how to fund the trust. Authorized by federal law, this trust holds the assets of the spouse who died first for the benefit of the surviving spouse. This trust must be created by a Will. As such, a probate is necessary. There are many advantages to probate, which Darol summarizes. If implemented correctly, the assets in the trust are not subject to Medicaid spend downs, the five-year lookback period, transfer penalties, and Medicaid liens.

Darol also explains the parts and parties to any trust and compares a trust to an estate, which refers to the assets of a deceased asset owner. Darol also explains why he advises that family’s avoid appointing a family member as the trustee or executor of the family trust and probate executor.