Revocable trust and long term care
If you have a revocable trust and you go in a nursing home can they take your home if it has been in effect for 5 years or more if you run out of money to pay nursing home.
Terry Says
The revocable living trust does NOT protect you against the need for spending down your money for nursing home care, including any Social Security or retirement income. The 5-year lookback rule applies only to assets placed in an IRREVOCABLE Trust or gifted away in the 5 years preceding an application for Medicaid payment of nursing home care.
But if you have a spouse or child living in the home you own, or co-own, they will not take your house, although they may make a claim against your estate. Each state Medicaid program sets its own rules, so you’ll need to check with the department on Aging in your state of residence.
If you live in Illinois, this article will be helpful: https://www.medicaidlongtermcare.org/eligibility/illinois/
The best way to protect assets is to have a long term care insurance policy — but that should be done well before the issue arises.
