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With a Revocable Living Trust Are All My Assets Protected From the Nursing Home?

Updated: Feb 20

Attorney Thomas B. Burton answers a reader question about whether holding her assets inside of a Revocable Living Trust in Wisconsin will protect them from being used to pay for her nursing home care.



Transcript of Video: With a Revocable Living Trust Are All My Assets Protected From the Nursing Home?


Today's question comes from Somerset

Wisconsin and it

is the following with the revocable

living trust are all my investments

protected if I went into a nursing home

can they take all my assets so this is a

very important question and I'm glad you

brought it up the short answer is with a

revocable living trust it's not going to

provide you with asset protection for

nursing home purposes revocable living

trusts are great for incapacity planning

and for probate avoidance meaning

avoiding probate court at debt but they

do not provide Medicaid asset protection

if you want a trust that will protect

your asset in order for you to qualify

for Medicaid or prevent the nursing home

from going after those assets you're

going to want what we call an

irrevocable trust now in order to do any

of this type of planning there's a five

year look-back period so you need to do

the planning five years before the date

that you plan to enter the nursing home

and need Medicaid assistance if you have

a revocable living trust that's dated

before August 1, 2014 there is some

limited protections that are available

to trust that were made before that date

now I dropped a trust before that date

and I've seen them and if a client has

when I always advise them about this

date however it does not mean all the

assets are protected it's just right now

the state of Wisconsin says for any

trust after August 1, 2014

revocable trusts they're going to go

after those assets in a state recovery

just like they would with a will or

anything else for trust before that date

for right now they're saying those

assets they will not go after them for a

state recovery purposes however those

assets will still be countable to you

when you try to qualify for Medicaid so

watch some of my other videos if you

want to get into the distinctions

between qualifying for

Medicaid and Medicaid asset protection

but the short answer is if you want that

nursing home protection you're going to

want to talk with a qualified state

planning and elder law attorney about an

irrevocable trust to protect your asset

so great question and thank you for

asking.


© 2020 Burton Law LLC. All Rights Reserved.

Transcript and captions provided for ease of access for the hearing impaired.

For questions about this topic, or to suggest a topic for a future blog post, please contact my office.