Does a Living Trust Protect My House From the Nursing Home?
By Chuck Roulet, Attorney · Licensed in Florida and Minnesota
Short answer: No. A revocable living trust gives no protection from nursing home costs, no matter how long the house has been in it. Protecting a home takes a different tool, an irrevocable trust, usually set up at least five years before care is needed.
Where the Myth Comes From
A viewer recently wrote that the whole point of a family trust is to protect the house if someone needs long-term care, and that after five years in the trust, the state can’t touch it.
That belief is very common, and it mixes up two different kinds of trusts.
Why a Revocable Trust Doesn’t Protect You
A revocable living trust is one you can change or cancel at any time. You can take the house or the money back out whenever you want. Because you keep that control, Medicaid treats everything in it as yours. It counts toward the asset limit, and it can be used to pay for your care.
The five-year rule people have heard about is real. But it applies to assets given away or placed in an irrevocable trust, not to a trust you can still undo.
What Does Protect a Home
An irrevocable trust, often called a Medicaid asset protection trust, can protect a home. Once the home is in that trust, you no longer own it in Medicaid’s eyes. You can usually still live there.
Timing matters. Medicaid looks back five years at transfers. A trust set up well before care is needed has the best chance of working. Waiting until a diagnosis or a fall usually means fewer options.
Why This Matters
Care is expensive. According to the 2025 Genworth Cost of Care Survey, a private nursing home room averages $168,630 a year in the Minneapolis area and $164,250 a year in the North Port area of Southwest Florida. A few years of care can use up a lifetime of savings, and the house is often next.
To learn more, download my free guide, How to Protect Your Home from Nursing Home Costs.
Watch the Video
I explain this in my video “Is Getting a Trust a HUGE Mistake? What I’ve Learned After 30 Years”
Read the full article: Is Getting a Trust a Huge Mistake? What I’ve Learned After 30 Years
If you want to know whether your home is protected, schedule a consultation at Rouletlaw.com. Minnesota: 763-420-5087. Florida: 941-909-4644 or fill out the contact form on this page.
About the Author
Chuck Roulet is the founding attorney of Roulet Law Firm, P.A., with offices in Minnetonka, Minnesota and Venice, Florida. He has practiced estate planning and elder law for nearly 30 years and is one of very few attorneys licensed in both Minnesota and Florida. Chuck has trained more than 35,000 attorneys and financial professionals as a continuing education speaker and is the author of three books, including The Florida Snowbird Guide. Florida: 941-909-4644 · Minnesota: 763-420-5087 · Rouletlaw.com
This page is general information, not legal advice. Reading it does not create an attorney-client relationship.
