What is an irrevocable trust?

An irrevocable trust is a type of trust that is set up to protect assets from being used for Medicaid eligibility purposes in the state of Maryland. This type of trust is established by transferring assets, such as money, stocks, bonds, and real estate, to a third party trustee. The trustee is then in charge of managing and distributing the assets for the benefit of the beneficiary, which can be a person, charity, or non-profit organization. An irrevocable trust is permanent and cannot be changed or revoked once it is set up. This is important to keep assets from being counted as part of the Medicaid eligibility requirements. The assets held in an irrevocable trust will not be counted as part of the applicant’s financial resources and will not be subject to Medicaid estate recovery when the beneficiary dies. In addition, the assets will not be taxed or used to fund nursing home care for the beneficiary. Irrevocable trusts are an important part of disability planning law in Maryland and can help protect assets from being used for Medicaid eligibility purposes.

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What is an irrevocable trust?

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