What happens when you sell an asset inside an Irrevocable Medicaid Trust?

Dear Clients and Friends:

What happens when you sell an asset inside an irrevocable Medicaid trust? Keep reading….

CLIENT QUESTION:

I’m thinking of selling my Florida condo that is owned by my trust. I understand the money has to go into a Trust bank account.  My question is, does it start the five-year look back again because we moved the money?

MY RESPONSE:

This is a question I get all the time in various forms. “We want to sell the house and buy another.” “ We want to liquidate an investment account and then reinvest it in another account”. “I want to sell any trust asset and buy another asset.” They are all in the same situation.

The good news is that MEDICAID DOES NOT GET A SECOND BITE AT THE APPLE! The trust can buy and sell and buy again at any time without a new five-year look-back. The only time that the look-back comes into play is when YOU transfer something new to the trust. What happens to that asset after it is in the trust is irrelevant. Good news!

I hope this helps! Please forward this information to your friends and relatives to share these informative answers to some very commonly asked questions.

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