Can Medicaid delay eligibility with a home in a trust?

GladImHere...

A Revocable Living Trust (aka “Living Trust” or “Inter Vivos Trust”) is an estate planning tool that is frequently used as a Will substitute. The primary advantage is that the agreement provides for successor trustees to step in and manage the affairs of the settlor(s) (the person or persons who established the trust) in the event of incapacity as well as manage the settling of affairs and distribution of assets at death. Moreover, assets titled in the name of the trust are not subject to probate at the settlor’s demise.

The terms of a Revocable Living Trust agreement are, as the name of the trust implies, fully revocable during the life of the settlor(s). At the demise of the settlor(s) the terms of the trust become irrevocable and CANNOT be changed by the trustee or the beneficiaries except where discretion may be granted by the agreement.

Because the Settlor has full discretion over the assets titled in a Revocable Living Trust (can sell/gift/destroy) these assets are considered fully countable for Medicaid eligibility purposes unless otherwise subject to exemption.

The homestead residence is a case in point. Whether a home (presuming it otherwise qualifies as a homestead residence) titled in the name of a Revocable Living Trust will retain its homestead character will depend on the state you live in.

I see you live in Colorado in wish case a homestead residence titled in the name of a Revocable Living Trust will retain its homestead character and therefore will remain an exempt asset for Medicaid eligibility purposes (as long as “intent to return” to the home is expressed when applying).

Since your question is confusing as to whom the parties to the trust are, whether they are living or dead, or if living, if they are or are not mentally competent I cannot specifically answer your question with regard to the three children but I hope this helps.

We were counseled that property in a trust does not impact medicaid eligibility. My husband is an only child so my MIL had her lawyer put my husband's name on the deed. My husband then owned 75% of the property and my MIL 25%. That is how it was set up. We never reached the point of applying for medicaid as my MIL lived with us and then passed before any move was considered. I would think in a trust the property can be left to three as well as just one. Lawyer just said it was important to get names on the deed.

It is a revocable living trust.