Question
We recently found out that my mom would not have enough money to pay for a nursing home and that she owns a little too much to get Medicaid. In this case would a living trust help us?
— Anonymous Caring.com community member
Answer
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Expert Joseph L. Matthews is a Caring.com senior editor, an attorney, and the author of Long-Term Care: How to Plan & Pay for It and Social Security, Medicare, & Government Pensions: Get the Most Out of Your Retirement & Medical Benefits.
When Medicaid decides whether your mother is eligible for Medicaid coverage of nursing home care, it looks to see whether her income and assets are below her state's Medicaid limits. A living trust would not protect any of your mother's assets from consideration by Medicaid because she would still control how the trust funds are spent. Also, a living trust is revocable, which means your mother could end the trust at any time and use the money in it. For these reasons, Medicaid would count the funds in the trust as still belonging to your mother.
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