Does Placing Your Home in a Trust Protect It From Medicaid in New York?

Many homeowners worry about losing their homes if they ever need long-term care. A common question in estate planning is whether placing your home in a trust protects it from Medicaid in New York. While trusts can play an important role in planning, not all trusts provide Medicaid protection, and using the wrong strategy can create unintended consequences.

Understanding how trusts and Medicaid rules work together is essential before making any decisions.

What Is a Revocable Living Trust?

A revocable living trust is a trust you create during your lifetime that you can change or revoke at any time. Assets placed into a revocable trust remain under your control, and you can serve as your own trustee.

In New York estate planning, revocable living trusts are often used to avoid probate and manage assets efficiently. However, control over the assets is a key factor when it comes to Medicaid eligibility.

Understanding Medicaid Eligibility and Asset Limit Rules

Medicaid is a needs-based program with strict income and asset limits. In New York, eligibility rules focus on whether an applicant has access to or control over assets.

When determining eligibility for Medicaid long-term care benefits, Medicaid looks at assets owned or controlled by the applicant, as well as certain transfers made within the lookback period. Proper planning is critical to avoid disqualification or penalties.

Can a Revocable Trust Help With Medicaid Asset Protection?

A revocable living trust generally does not protect assets from Medicaid in New York. Because you retain control over assets held in a revocable trust, Medicaid typically treats those assets as still available to you.

This means placing your home into a revocable trust alone will not shield it from Medicaid spend-down requirements. Relying solely on a revocable trust for Medicaid planning can lead to unexpected outcomes.

Other Effective Strategies for Medicaid Planning

While revocable trusts are not effective for Medicaid asset protection, other planning tools may be appropriate depending on your goals and timing. These strategies may include irrevocable trusts, spousal planning options, exemptions for primary residences, and careful asset transfers that comply with Medicaid rules.

Each approach carries legal and financial implications, and the right strategy depends on individual circumstances, health considerations, and long-term planning objectives.

Safeguard Your Assets With Proper Medicaid Planning

Planning for Medicaid requires careful coordination between estate planning and long-term care considerations. Understanding what tools work and which do not is essential to protecting your home and assets.

Contact MontanaroLaw’s trust attorneys today to schedule a consultation and discuss Medicaid planning strategies that comply with New York law and support your long-term goals.