Legal Question in Wills and Trusts in Ohio
How Long Under Revocable Family Living Trust to Protect Assets?
My parents signed a family revocable living trust three and a half years ago. Now, my father needs to be admitted to a nursing home. I've heard that his assets in the trust are protected from a lien / collection from the government (for the cost of nursing home care), if the trust has been in existence for a given period of time. I've heard 3 years, and I've also heard 5 years. My mother still lives in the home, and I've told her that she will not lose her home while she's there. Are my parents' trust assets vulnerable, or is their estate vulnerable to a government lien / collection under these circumstances?
2 Answers from Attorneys
Re: How Long Under Revocable Family Living Trust to Protect Assets?
A revocable living trust will not protect your parent's assets from later estate collection by Medicaid, if Medicaid is used for nursing home care. The state can sue to force the trustee to use the assets for care. If the assets are transferred to an irrevocable trust, the lookback period is 60 months or 5 years from the date of Medicaid application. The marital home is not counted towards assets in the application process.
Re: How Long Under Revocable Family Living Trust to Protect Assets?
The answer here is absolutely clear. Because your parents have the power to revoke the trust and take back the assets, the assets are a countable resource for Medicaid purposes and will need to be used to pay for your father's nursing home expenses. If your parents had given the assets to their children, then a 3 year look-back period applies. If your parents had given the assets to an irrevocable trust, then a 5 year look-back period applies. The house should be transferred back into your mother's name. You should see a Medicaid attorney to save a portion of your parents' assets.
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