Elder Law Answers
Understanding the Common Types of Trusts
There are a number of different kinds of trusts, but they fall into two basic categories: testamentary and inter vivos. On...
Read moreWill Making My Trust Irrevocable Mean a Medicaid Penalty?
- November 22nd, 2023
Q
I recently had my living trust updated after 20 years. Now I regret that I didn't convert the trust to an irrevocable trust. I recently had a mini stroke and am scheduled for some surgery. Can I convert the trust to an irrevocable trust at the same time that I submit an application for Medicaid?
A
No. The creation and funding of an irrevocable trust, whether creating a brand-new trust or amending a revocable trust to make it irrevocable, within five years of applying for Medicaid will result in a Medicaid penalty period. You could end up being ineligible for Medicaid benefits for up to five years. To find out if there is anything you can do, we suggest consulting with an elder law attorney in your state. Find a qualified attorney near you.