A revocable living trust can be a good estate planning choice for many people, and you do not have to be extraordinarily wealthy to realize the benefits. However, a living trust will not satisfy all objectives. Many people seek eligibility for Medicaid late in their lives because this government-run health insurance program pays for long-term care. The majority of elders will someday need help with their activities of daily living, and Medicare does not pay for this type of assistance.
If you convey assets into a revocable living trust, they would be counted by the Medicaid program if you needed the program for long-term care assistance. Since this type of trust is revocable, you can take back personal possession of the assets at any time, and you can also act as the trustee and the beneficiary while you are living. Due to the fact that you retain this level of control, the assets would be counted by Medicaid.
Assets in an irrevocable living trust, on the other hand, may not be considered countable assets for Medicaid purposes following the look-back period (discussed below). For that reason, many people concerned about long-term care will consider creating irrevocable living trusts.