That’s why an irrevocable intervivos trust is seldom used for protection − though such trusts can be useful for estate planning.revocable trust will not protect your assets because your creditors can step into your shoes and revoke your trust.For example, assets titled to your revocable living trust are vulnerable to your present and future lawsuits.The goal of every elder law attorney that handles Medicaid planning cases is to take countable resources and turn them into non-countable resources in accordance with Medicaid law and regulations.So, how do elder law attorneys do that with a sizable 401(k) or IRA?
In the case of Medicaid, any assets you transfer within the five years prior to entering a care facility are subject to seizure after your death.
Unfortunately, Medicare is not structured to pay for long-term care.
Medicaid, a federal insurance program for low-income individuals, will cover nursing home care, but you may not be able to qualify for that care until you have exhausted your existing assets.
It is important to distinguish a revocable from an irrevocable trust because a revocable trust won’t protect you. You also need an irrevocable trust that you presently fund − an intervivos trust.irrevocable intervivos trust for protection is that once you establish and fund the trust, you cannot cancel or modify it and reclaim property you transferred to it.
You thus lose both ownership and control over the trust assets.