Liquidating assets before
Trusts can provide many advantages for asset protection, as well as easing the transfer of property from one generation to the next.
However, not every trust protects assets from creditors or lawsuits.
Because of this legal process, all property that you owned at the time you filed for bankruptcy may no longer be your property to sell, depending on whether it is exempt from liquidation by the trustee.
If your spouse's income is less than the amount your state exempts, you can direct a portion of your income to your spouse to bridge the gap.
The income you transfer to your spouse for monthly maintenance is exempt income and sheltered under federal law. Unlike a living trust, an irrevocable trust is exempt from nursing home costs.
Unfortunately, this leaves you without the financial security you previously enjoyed if you decide to return home.
It also absorbs money you might prefer that your loved ones inherit after you pass away.