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An irrevocable trust is a planning tool used for asset protection purposes. Many people will transfer assets such as a home or liquid assets into an irrevocable trust to start the five year clock for Medicaid planning.
Irrevocable trusts must be drafted properly in order to work for Medicaid purposes. The departments of social services are very, very strict about the rules and the language for these documents. The irrevocable trust must be drafted to be flexible so that as individuals age, we can ensure that a maximum amount of assets are protected.
