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Wondering how to protect your house from medical debt?
This article will teach you how to protect your house from medical debt creditors.
Keep scrolling to learn more.
We run out of free consultations every month. Sign up to make sure you get your free consultation. (Free $350 value.)
Let’s say that you think you’ll be facing significant medical debts.
And that the healthcare providers may come after your house to pay these debts.
This is if you’re unable to protect yourself against medical debts with ways, like:
You can protect your house from medical debts using an irrevocable trust.
An irrevocable trust removes your name from your house.
And places the ownership of the house under the trust’s name.
Creditors cannot access your house to repay the medical debts that you owe.
This is because you don’t own the house – the trust does.
Here are some rules for a trust to NOT be accessible by medical bill creditors:
You will need a trust lawyer to set this up correctly.
Fill out the form on this page to get your free consultation.
We had a wife call us because:
She was concerned that their house could get claimed to repay the medical debts.
Initially, she wanted to quit claim deed his half of the house to her.
This would put it 100% in her name.
The issue is that the house is marital property and creditors could come after it.
The only way to protect the house from his medical debt would be to:
Here are some other notes:
In their case, we set up the irrevocable trust rules such that:
The benefits of this set up were that:
If you would like a similar set up for yourself, fill out the form on this page.
Here are other questions that this wife asked us on our free consultation call.
Yes, you can sell a house in an irrevocable trust.
But the trustee, who is the person managing the trust, must sell the house.
The process goes like this:
This is because the trust owns the house, not you.
The trustee then uses this money according to the rules of the trust.
Often benefiting the people the trust was set up to help.
After selling the house in a trust, those funds can buy the next house.
Yes, a trust can protect assets from medical bills.
But only an irrevocable trust – not a revocable trust.
Placing assets into an irrevocable trust takes ownership out of your name.
And places it under the trust’s ownership.
This means the assets are no longer yours; they belong to the trust.
These assets are not in your possession.
So, they cannot be accessed by creditors for medical bills.
The trust acts as a shield, keeping the assets safe from personal liabilities and debts.
However, the protection effectiveness depends on:
Yes, your house can be taken for medical bills.
Here’s how your house could get taken for medical bills:
However, the outcome depends on several factors:
No, a hospital cannot directly take your house for unpaid medical bills.
Here’s how it typically works:
Key term: Judgment.
If the court decides in favor of the collection agency, they get a judgment.
This judgment allows them to collect the debt.
Your house is often protected by:
If you want to protect your house from medical bill creditors, fill out the form below.
At The Hive Law, we understand the importance of:
We only accommodate a limited number of clients each month.
So don’t miss your opportunity to work with our trust fund lawyers.
Benefits of our trust services:
Avoid the pitfalls of inadequate estate planning strategies:
Talk soon.
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Need to keep your money and property safe? We help make sure your hard-earned assets are protected. Our team knows how to create plans that guard against lawsuits and creditors. We work to keep your wealth safe for you and your family’s future.
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