The Listen to Lawrence Letter: If we sell a house that’s in an irrevocable trust, will the Medicaid look-back period start again?
May 28, 2021
Dear Clients and Friends,
This next question appears to be straightforward and simple but unless you are absolutely sure of the answer, you will be confused and uncertain about how to move forward.
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Our current house, in our irrevocable Medicaid trust, has passed the Medicaid look-back period, but if we sell it and buy a new one does the Medicaid look-back period begin again? Thanks for all your help.
NO! The look-back only applies when you transfer an asset into the trust, not when an asset inside the trust is changed into another asset (cash or another house). They only get one bite at the apple!
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Until next time…
peace, health and happiness,
Lawrence Eric Davidow