- Consumer
Irrevocable trust
Irrevocable Trusts and Medical Costs: Are assets protected from long term cost of medical care, and is there a time limit on the assets that are put in the trust that they taken for medical cost?
If you transfer assets to avoid them being reached to cover nursing home costs there is a 60 month look back period during which assets can be reached. Although the laws were recently toughened with respect to this type of planning, transfers to trusts had been subject to this 60 month look back for a number of years. The type of planning you are referring to is called “elder law” planning and is really a subspecialty of estate planning. You should consult with an elder law specialist in your state, as the rules by state differ. You should also evaluate the possible benefits of long term care insurance to address these costs.