"My mom put the house in a trust six months before she went into the nursing home. Does that protect it?"
He looked hopeful. I hated what I had to tell him.
"What kind of trust?"
"A living trust. Her lawyer set it up."
I exhaled slowly. "A revocable living trust?"
"I think so. Yes."
"That doesn't protect it. Not from Medicaid."
The Problem
A revocable living trust is invisible to Medicaid. The state sees right through it. Mom still controlled the assets. They're still hers.
What Works
To protect a house from Medicaid, you generally need an irrevocable trust. And it needs to be set up five years before applying for Medicaid.
Five years. That's the look-back period.
Six months was not five years.
The Takeaway
Plan early. The window is longer than people think. Until suddenly it isn't.
Many families assume a living trust will shield their home from nursing home costs. But without the right type of trust and enough time, that protection simply doesn't exist.
If you're thinking about Medicaid planning, start the conversation with an elder law attorney now.