• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Nirenstein, Horowitz & Associates P.C.

Estate Planning | Making a Difference One Family at a Time

An Estate Planning Law Firm
Making a Difference One Family at a Time

Call Now: (860) 548-1000

Attend a Complimentary Seminar
  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest
  • RSS
  • Twitter
  • YouTube
  • Home
  • Our Firm
    • About Our Firm
    • Careers
    • Client Testimonials
    • Meet Our Team
  • Services
    • Asset Protection & Business Planning
    • Estate And Gift Tax Figures
    • Estate Planning
    • LGBTQ Estate Planning
    • Loss of a Loved One
    • Pet Planning
    • Powers of Attorney
    • SECURE Act
    • Special Needs Planning
    • Trust Administration and Probate
  • Elder Law
    • Alzheimer’s Disease
    • Caregiver Information
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
  • Resources
    • Complimentary Estate Planning Worksheet
    • Complimentary Medicaid/Long-Term Care Calculator
    • DocuBank
    • Elder Law Resources
      • Glastonbury Elder Law Resources
    • Estate Planning Articles
    • Estate Planning Checkup
    • Estate Planning Definitions
    • Estate Planning Presentations
    • Estate Planning Seminars
    • Estate Planning Techniques
    • Frequently Asked Questions
      • Asset Protection and Business Planning
      • Elder Law & Medicaid
      • Estate Administration
      • Estate and Gift Tax
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Incapacity Planning
      • In-Home Elder Care
      • Irrevocable Trusts
      • LGBTQ Estate Planning
      • Living Trust
      • Medicaid Planning
      • Nursing Home Asset Protection FAQs
      • Probate
      • Probate Avoidance
      • SECURE Act 2.0
      • Trust Administration
      • Wills
    • Newsletters
    • Probate Resources
      • Probate Resources
    • Published Books
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
  • Seminars
  • Communities We Serve
    • Fairfield County
      • Darien
      • Fairfield
      • Stamford
    • Hartford County
      • Avon
      • Hartford
      • Simsbury
      • West Hartford
    • Litchfield County
      • Watertown
    • Middlesex County
      • Middletown
      • Old Saybrook
    • New Haven County
      • Middlebury
      • New Haven
    • New London County
      • Groton
      • Old Lyme
      • Stonington
    • Tolland County
      • Mansfield
    • Windham County
      • Woodstock
  • REVIEW US
  • Blog
  • Contact Us
Home » Estate Planning » Can You Access Assets in a Trust?

Can You Access Assets in a Trust?

August 25, 2020 by Jeffrey A. Nirenstein, Estate Planning Attorney

irrevocable trustsTrusts are legal devices that are often misunderstood. If you establish a trust, you make the trust the owner of the property that you convey into it. This can lead you to the belief that you will never have access to the assets again after you fund the trust.

While this is a reasonable assumption, it is not entirely true. There are different types of trust, and the level of access will depend on the individual trust and the purpose that it serves.

Irrevocable Trusts

An irrevocable trust is self-explanatory in a broad sense. After the trust has been created and funded, you cannot change your mind, revoke the trust, and take back direct personal possession of the property.

Why would you be willing to accept this arrangement?

There are some reasons why people want to surrender incidents of ownership in a legal sense. For example, high net worth individuals have estate tax concerns. In Connecticut where we practice law, there is a state level estate tax, and there is also a federal estate tax.

If you convey assets into an irrevocable trust of some kind, they would no longer be part of your estate for tax purposes. In some cases, you can receive distributions from these trusts, and they typically facilitate transfers to the heirs at a tax discount.

These trusts are also used by some people that want to qualify for Medicaid. This program is relevant to elders that were never financially needy, because it will pay for long-term care. Medicare does not cover custodial care, and it is very expensive.

Since Medicaid is a need-based program, you cannot qualify if you have more than $2000 in countable assets in your own name.

A commonly used strategy would be to convey assets into an irrevocable, income-only Medicaid trust. The grantor of the trust would be able to accept distributions of earnings that are generated by the principal. If the grantor ever applies for Medicaid coverage, the principal would not be counted.

These are couple of the reasons why people use irrevocable trusts, but there are others.

Revocable Living Trusts

The other type of trust that is commonly used is the revocable living trust. You can in fact revoke or rescind this type of trust at any time. Plus, you have total access to all the assets that have been signed over to the trust, because you can act as the trustee and the beneficiary while you are alive.

Because you do not surrender incidents of ownership, this type of trust would not be useful for estate tax efficiency and Medicaid planning purposes. Assets in the trust would be counted in both instances.

There are other reasons why people use these trusts, and in fact, the living trust is the most commonly used estate planning device aside from a simple will. We will explain all the benefits in a future post.

Attend a Free Seminar

You found your way to this website because you are looking for information about estate planning, and there is a lot of it here for you to explore. In addition to these resources, we also conduct seminars at strategic locations in and around Hartford.

The sessions are offered free of charge, and we get a lot of positive feedback from attendees. To see the schedule and obtain registration information, visit our seminar page.

Need Help Now?

If you are ready to take action to put a plan in place, our doors are open. You as you can see, there are different ways to transfer assets, and the right choice will depend upon the circumstances.

We can gain an understanding of your situation, help you make informed choices, and take the right steps to bring your wishes to fruition when the time comes.

To schedule a consultation appointment, give us a call at 860-548-1000. If you would rather send us a message at first, fill out our contact form and we will get back in touch with you promptly.

  • Author
  • Recent Posts
Jeffrey A. Nirenstein, Estate Planning Attorney
Jeffrey A. Nirenstein, Estate Planning Attorney
Founding Partner and Vice President at Nirenstein, Horowitz & Associates PC
Jeffrey A. Nirenstein is a founding partner and vice president of the law firm of Nirenstein, Horowitz & Associates, P.C. He received his bachelor of arts degree in government from Clark University and his law degree from New York Law School.

Mr. Nirenstein is licensed to practice before the courts of the State of Connecticut and the United States District Court. He is a member of the Connecticut and Hartford County Bar Associations, and the Estate and Probate, Elder Law, Business Law and Real Estate Sections of the Connecticut Bar Association.
Jeffrey A. Nirenstein, Estate Planning Attorney
Latest posts by Jeffrey A. Nirenstein, Estate Planning Attorney (see all)
  • Exploring the Tax Benefits of Charitable Trusts - September 14, 2023
  • The Ripple Effect of Dying Without a Will or Trust - August 29, 2023
  • Will an Unwitnessed Handwritten Will Hold Up in Court? - August 10, 2023
Share our Content:

Filed Under: Estate Planning Tagged With: irrevocable trusts, Revocable Living Trusts

Other Articles You May Find Useful

estate planning for single seniors
Tackling Unique Estate Planning Challenges for Single Seniors
letter of last instructions
The Last Note: Crafting a Comprehensive Letter of Final Instructions
charitable trusts
Exploring the Tax Benefits of Charitable Trusts
incentive trust
A Trust Can Provide Incentives
estate planning tips
Estate Planning Tips to Help You Protect Your Family
estate planning myths
Debunking 5 Common Estate Planning Myths: Protecting Your Future with Facts

Primary Sidebar

Nirenstein, Horowitz & Associates

Upcoming Seminars

Estate Planning Seminar

Date: October 17

Venue: Canton Community Center, 40 Dyer Avenue, Collinsville, CT, 06019, United States

Estate Planning Seminar

Date: October 18

Venue: Cheshire Public Library, 104 Main Street, Cheshire, CT, 06410, United States

See all Seminars

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

TESTIMONIALS

Blog Subscription

Our blog gives you the most up-to-date estate planning news. Sign up today to receive our regular updates!

  • This field is for validation purposes and should be left unchanged.

WESTPORT OFFICE

8 Wright Street, Suite 107
Westport, CT 06880
Phone: (860) 548-1000
Fax: (860) 761-1070
preserveyourestate_sidbr_map

Somerset Square

200 Glastonbury Boulevard, Suite 202
Glastonbury, CT 06033-4418
Phone: (860) 548-1000
Fax: (860) 761-1070
preserveyourestate_sidbr1_map

Office Hours

Monday8:30 AM - 5:00 PM
Tuesday8:30 AM - 5:00 PM
Wednesday8:30 AM - 5:00 PM
Thursday8:30 AM - 5:00 PM
Friday8:30 AM - 5:00 PM

Footer

footer-logo
  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc.