| It is worth beating this to death…read on:
CLIENT QUESTION:
In the April 4, 2024, Volume 5, Issue 232 Listen to Lawrence Letter, you say:
“Note that after the first death, the house will remain exempt from Medicaid as long as the surviving spouse stays out of a nursing home. If the surviving spouse ends up in a nursing home, then the home will no longer be exempt and the revocable trust will not prevent Medicaid from putting a lien on it to protect Medicaid’s right of reimbursement. Only an irrevocable trust would help in this situation.”
My question is: “If the surviving spouse ends up in a nursing home, does an irrevocable trust ensure that a home (in the trust) is exempt.” It wasn’t clear if this is true. Sorry if I am beating this to death…
Regards.
MY RESPONSE:
If a surviving spouse owns a house and ends up in a nursing home, Medicaid will go after the house to pay for the surviving spouse’s care. Period. This will be true whether the surviving spouse owns the house outright or in a revocable trust. However, if the surviving spouse had put the house into an irrevocable Medicaid trust more than five years prior, then the house would have been completely protected.
I hope this helps. |
