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?
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.
This article was reprinted with the permission of ElderLawAnswers.com.
Pearson Bollman Law is the premier estate planning law firm in Iowa, with offices in Des Moines, Marion and Dubuque. Our clients engage us when planning for the two most important aspects of their lives: Everything they own and everyone they love. If you have any questions regarding the material in this article and how it applies to you, please contact Pearson Bollman Law at 515-727-0986.