Author: WB Admin

Many families in Florida face a difficult question when planning their estate: How do you protect an inheritance from harming a loved one who struggles with addiction or heavy debt? A large sum of money can worsen risky behavior or quickly vanish to creditors. Rather than disinheriting these heirs or ignoring the problem, there are practical ways to support them and secure your family’s future.

Using Trusts to Guide and Protect

A standard will often hands over assets without limits, which can be dangerous for certain heirs. A trust, however, provides structure and oversight. 

A spendthrift trust protects assets from creditors and prevents an heir from recklessly spending a full inheritance. An incentive trust can go a step further by linking access to positive steps, such as maintaining sobriety or attending job training. 

These tools allow you to shape support around the heir’s needs without leaving them completely on their own.

The Importance of a Strong Trustee

Choosing the right trustee is critical. This person or institution oversees distributions and enforces the rules you set. 

In Florida, trustees have strong legal backing when they act within the terms of the trust. A professional trustee can manage funds objectively, avoiding family tension that often arises when a relative is in charge. 

Trustees can also direct payments straight to treatment providers or cover living expenses instead of handing money to the heir. In some cases, they can require health updates, drug testing, or financial reports before making distributions. 

Practical Ways to Support Troubled Beneficiaries

Trusts can include detailed steps to guide an heir through recovery or debt repayment. For example, distributions may increase as an heir shows steady progress, like completing a treatment program or maintaining stable housing. In periods of relapse or financial crisis, a trust might limit payments to essentials such as rent and medical care. Working with addiction counselors or financial coaches as part of the plan can also improve long-term outcomes.

We Help Florida Families Build Thoughtful Solutions

At The Law Office of Wickersham & Bowers, we work with families to create trusts that respect each heir’s challenges while protecting family assets. We understand that each situation calls for careful, personal planning. If you are considering ways to support a loved one facing addiction or serious debt, we invite you to contact us. We help clients design thoughtful, protective strategies that honor both their wishes and their family’s future.

Paying for long-term care is a challenge many families face. Nursing home costs continue to rise, and without planning, these expenses can wipe out a lifetime of savings. Medicaid can cover care, but qualifying means you must meet strict income and asset rules. Fortunately, there are legal ways to protect what you have worked hard to earn.

How Medicaid Rules Affect Your Assets

Florida limits how much a person can own and still receive Medicaid. For individuals, countable assets must stay below $2,000. For married couples, the spouse who is not applying, called the community spouse, can keep up to $157,920. Even with these allowances, most people will still need to spend down some assets.

But here is where it gets tricky: Medicaid will check financial records from the past five years. If you gave away money or transferred property during that time, you could be penalized and delayed from getting benefits. This is why it is important to plan early and carefully.

Smart Ways to Protect What You Own

There are a few tools that can help: 

1. Irrevocable trust: Once assets go into this kind of trust, they no longer count toward the Medicaid limit if you set it up before the look-back window.
2. Life estate: A life estate lets you transfer a home to someone else but still live there for the rest of your life. 
3. Medicaid-compliant annuities: Some families use Medicaid-compliant annuities to turn assets into income, which helps meet the rules without giving up everything.
4. Funeral trust: This type of trust puts aside money for future burial costs or signs a formal care agreement with a family member. 

These approaches allow you to spend money in ways that benefit you while still following Medicaid guidelines.

We Help Florida Families Plan Ahead for Care

At Wickersham & Bowers, we help families in Florida protect their assets and plan for nursing home care with confidence. Whether you are years away from needing care or already in the process of applying for Medicaid, we can walk you through every step. Reach out to us today to schedule a consultation and start building a plan that works for your future.