Can Medicare or Medicaid pierce an irrevocable trust?

Answer 1

It depends on how the trust is drafted. A properly drafted irrevocable trust, in Florida, will be invisible to Medicaid (Medicare doesn't factor assets into whether or not one is qualified the way Medicaid does).

However, transfers of assets into the trust must be done 5 years before applying to medicaid or medicaid will assess a transfer penalty (this is referred to as the "five year lookback"). The transfer penalty is a period of ineligibility for certain medicaid benefits depending on the size of the transfer.

As a result, irrevocable trust planning would not be appropriate for all Medicaid planning scenarios.

Answer 2

Can money in irrevocable living trust be used for nursing home care? She has medicare and is not on medicaid.