[crushkerry]

Actually Old, depending on the kind of trust you set up that's not exactly true.

Plus, the "lookback" provision for putting money into a trust is 5 years, rather than the 3 years they look back for family gifts.

There are many downsides to Living Trusts. One of them is that you hit the highest tax rates much quicker. Also, if you have any control over the Trust at all, then it will be considered an asset, both for Medicaid purposes and for inheritance tax purposes.

[1Old Pro]

My post was tongue in cheek. But to your points, the poster probbly has 5 years before they require nursing care, they can get all income from the trust and a child can "manage" it as trusteee thus keeping realistic control over the assets. As far as tax rates, 50% of the "trust" assets is better than nothing.

There are other ways to preserve wealth and avoid taxation. My point is / was sarcastic that someone would actually consider taking care of themselves.