Long Island asset protection lawyer Seth Schlessel (https://www.schlessellaw.com/can-a-nursing-home-take-your-house-if-it-is-in-a-trust-in-new-york/) addresses a pressing concern for many New York residents: whether placing a home in a trust protects it from nursing home claims. The article “Can A Nursing Home Take Your House if it is in A Trust in New York?” explores this issue by examining different types of trusts and how they affect Medicaid eligibility and asset security. At Schlessel Law PLLC, the focus is on helping families understand how proper planning can safeguard what they have worked hard to build.
A Long Island asset protection lawyer like Seth Schlessel plays a vital role in guiding individuals through the Medicaid planning process using tools such as irrevocable trusts. The article states, “A nursing home cannot take your house if it is in an irrevocable trust in New York, provided the trust was established at least five years before applying for Medicaid.” This distinction is essential. Irrevocable trusts remove the home from a person’s estate, making it inaccessible for Medicaid recovery, while revocable trusts leave the home exposed to claims because control of the asset remains with the individual.
The advice of a Long Island asset protection lawyer becomes even more important due to New York’s five-year Medicaid look-back period. Transfers into an irrevocable trust made less than five years before applying for Medicaid may be disqualified, resulting in the home being considered available for care costs. Schlessel highlights that timing and trust type are both crucial for asset protection. Without proper planning, families risk losing their property to cover high nursing home expenses.
According to Schlessel, homes placed in an irrevocable trust are typically safe from nursing home claims. Once transferred, the home is no longer part of the individual’s estate and is generally beyond the reach of Medicaid. However, with revocable trusts, this protection does not apply. Because the individual still has access and control, assets in revocable trusts are considered part of the estate and may be used to pay for nursing home care.
The article discusses the Medicaid Asset Protection Trust (MAPT), a form of irrevocable trust created specifically for this kind of planning. Schlessel explains how a MAPT works: the individual transfers ownership of the home and other assets to the trust, which is managed by a trustee. While the individual cannot control the trust assets directly, they may continue to live in the home or receive rental income. This arrangement keeps the home protected while also preserving eligibility for Medicaid, as long as the trust is funded outside the five-year look-back period.
New York presents unique challenges due to its high cost of care. The average annual cost of nursing home care in the state is around $150,000, significantly above the national average. In places like Manhattan or the Hamptons, this figure can be even higher. Without advance planning, these expenses can quickly consume a person’s entire estate. At Schlessel Law PLLC, Seth Schlessel works with clients to evaluate their financial situation and recommend strategies to reduce this risk, including the use of long-term care insurance, pooled income trusts, and proper estate structuring.
Trusts offer additional benefits beyond asset protection. Seth Schlessel outlines how they can be used to avoid probate, manage asset distribution, and even reduce tax burdens. Revocable trusts are helpful for those wanting to maintain control and simplify estate transfers. However, they are not appropriate when asset protection is the goal. Irrevocable trusts, while more restrictive, provide the level of separation needed to prevent Medicaid from considering those assets in eligibility calculations.
The article clarifies that nursing homes do not usually challenge trusts directly. Instead, Medicaid agencies review trust structures during the application process. If Medicaid determines that the trust was created to hide assets, benefits can be denied. This is why trusts must be set up correctly and early. Schlessel reiterates that poorly structured trusts may fail to offer any protection and can even result in Medicaid penalties.
At Schlessel Law PLLC, attorney Seth Schlessel helps clients understand these legal nuances. His approach includes reviewing the total financial picture and offering custom solutions that balance immediate needs and long-term goals. For those unsure about how to plan for potential nursing home care, the firm provides guidance to help individuals and families take meaningful action.
Long-term care planning is essential for asset preservation, especially in a state with rising costs and strict Medicaid rules. For those with concerns about protecting their home or other assets, the guidance of an experienced attorney can make the difference between security and financial loss. Trusts, when correctly created and managed, offer a reliable method of shielding property from nursing home claims.
The article makes clear that relying solely on will-based planning or revocable trusts can leave assets vulnerable. Irrevocable trusts, particularly when used as part of a Medicaid Asset Protection strategy, are among the most effective tools available. With the right legal guidance, individuals can retain the benefit of their property while preparing for future care needs.
Seth Schlessel and his team at Schlessel Law PLLC continue to assist New Yorkers with proactive legal planning. From evaluating trust options to handling Medicaid applications, their services are designed to support long-term financial health and property preservation.
About Schlessel Law PLLC:
Schlessel Law PLLC provides estate planning and elder law services throughout New York. Led by attorney Seth Schlessel, the firm focuses on helping clients protect their assets, plan for future care, and navigate Medicaid eligibility requirements through practical and reliable legal strategies.
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