Friday, January 17, 2020

Can I Convert a Revocable Trust to an Irrevocable Trust When I Apply for Medicaid?


January 18th, 2018
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. To find one near you, go here: https://www.elderlawanswers.com/USA-elder-law-attorneys.

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