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Can an Irrevocable Trust Be Used for Assisted Living?
Date Updated: July 26, 2024
Written by:
Rachel Lustbader is a writer and editor with a background in healthcare and technology. Her work has been published on websites including HealthCare.com, BiteSizeBio.com, BetterHelp.com, Caring.com, and PayingforSeniorCare.com. She studied health science and public health at Boston University.
Both of Rachel’s grandmothers had very positive experiences in senior living communities, and Rachel saw firsthand the impact that kind, committed caregivers and community managers can have on seniors’ and their family members’ lives. With her work at Caring, Rachel hopes to help other families find communities, caregivers, and at-home products that benefit elderly loved ones and make life less stressful for family caregivers
Yes, an irrevocable trust can be used for assisted living to protect assets for seniors claiming public funding. However, the trust can’t be used to pay for assisted living. Once created, irrevocable trusts remove control of assets from the individual who set it up, except for limited circumstances.
Revocable vs. Irrevocable Trust
A trust acts as a legal mechanism for transferring assets to a trustee, who then follows specified terms to manage those assets and distribute them to beneficiaries. Revocable trusts, also known as living trusts, leave control of assets to the grantor until their death.
Individuals can change the terms and beneficiaries of revocable trusts and may choose to dissolve them. Conversely, guarantors of irrevocable trusts cannot control assets within or change them. Individuals can only change trust conditions in limited situations. Laws vary across states. If a senior’s circumstances drastically change, they should seek advice from an estate planning attorney.