The Listen to Lawrence Letter: Cars and Medicaid Trusts

April 19, 2024
April 11, 2024 • Volume 5 Issue 234
Cars and Medicaid trusts?….read on:


My question is: Can I add my 2022 Santa Fe PHEV to our existing irrevocable trust?


First, do not add assets to an already established Medicaid trust. This would create a new 5-year look back and could taint already protected assets if you need Medicaid within the new look back.

Secondly, we do not put cars into our irrevocable trusts. The reasons for this are that 1) a car is exempt anyway; 2) you may have trouble getting insurance on the car; and 3) if you continue to drive the car then Medicaid could argue that you are violating the terms of the trust (did you give it away or not?).

So, don’t worry about the car. By the way, you can put a car into a revocable trust.

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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As always, please send me your questions. If you are thinking about it, others are probably too, so my answers will no doubt help you and many others.

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Stay safe!