Hudson Valley
Estate Planning

Secure Your Legend

Who Needs an Irrevocable Trust?

Several recent conversations with my clients have started with, “I saw on TikTok that I need an irrevocable trust.” Unfortunately, irrevocable trusts do not all satisfy all estate planning goals, and may even come with debilitating drawbacks for clients. So, who may be a good fit for an irrevocable trust in New York?

  • Individuals seeking estate tax prevention. Transferring assets to an irrevocable trust can ensure those assets pass to heirs without estate tax. This is relevant to individuals with New York-based assets worth $6.9 million or more in 2024. 
  • Individuals seeking Medicaid eligibility. Assets in an irrevocable trust generally do not count toward a New York Medicaid long-term care applicant’s resource limit. It is most common for individuals with New York real estate valued at greater than $1 million to transfer that real estate to an irrevocable trust in order to become eligible for Medicaid.
  • Individuals seeking Medicaid asset protection. Assets not transferred to an irrevocable trust are generally subject to liens by Medicaid to recoup the cost of the Medicaid recipient’s long-term care. Thus, even individuals who qualify for Medicaid long-term care without needing an irrevocable trust may still desire an irrevocable trust to preserve an inheritance for their children and grandchildren.

Think an irrevocable trust may be right for you? Click here to schedule a free consultation with me.