SYRACUSE, NY – Families across Onondaga County considering long-term care planning often hear that a living trust can protect the home and savings, but the reality depends entirely on what type of trust is used and when the assets are transferred. Syracuse elder law attorney Frederick P. Davies of Davies Law Firm (https://davieslawfirm.com/living-trust-medicaid-what-you-must-know-new-york/) is providing guidance on how revocable and irrevocable trusts interact with New York Medicaid rules.
According to Syracuse elder law attorney Frederick P. Davies, a revocable living trust offers no protection from Medicaid because the state treats those assets as if the grantor still owns them outright. “Assets in a revocable trust are considered available because you can take them back at any time,” Davies explains. A properly drafted irrevocable trust, by contrast, can remove assets from the countable estate when funded well in advance of an application.
According to Syracuse elder law attorney Frederick P. Davies, New York Estates, Powers and Trusts Law section 7-1.16 establishes that a lifetime trust is presumed irrevocable unless the document explicitly states otherwise. For Medicaid planning purposes, however, the trust must be drafted with precise language that completely removes the grantor’s access to the principal to successfully qualify for asset protection.
Syracuse elder law attorney Frederick P. Davies highlights the five-year look-back period under 42 U.S.C. section 1396p as the central hurdle in long-term care planning. Under these rules, New York Medicaid reviews all asset transfers made within 60 months of a nursing home application. Any transfer completed for less than fair market value during this window can trigger a costly penalty period.
The penalty period is calculated by dividing the transferred value by a regional rate. William P. Davies, a partner at the firm, explains that for the Central New York area in 2026, the regional rate is approximately $14,146 per month, so a $150,000 transfer within the look-back window would generate a penalty of roughly 10.6 months. “The penalty does not begin on the date of the transfer,” he adds. “It starts on the date you would otherwise have become eligible for Medicaid.”
Certain transfers are exempt from the look-back rule, including transfers to a spouse, transfers to a blind or disabled child, transfers of a home to a qualifying caregiver child, and transfers to a trust for the sole benefit of a disabled individual under age 65. The firm helps families document these exceptions to support eligibility.
A Medicaid Asset Protection Trust, or MAPT, is the most effective vehicle for New York Medicaid planning. Frederick Davies notes that the grantor cannot serve as trustee, the trust must prevent access to principal, and funding must occur at least five years before a Medicaid application. New York’s estate recovery program under Social Services Law section 366 can also reach probate assets after death, and a properly funded MAPT generally avoids that exposure.
In a typical MAPT, the grantor transfers assets such as the home, savings accounts, or investment accounts into the trust, and a trusted family member or professional manages those assets according to the terms. Syracuse residents who place a home in a MAPT can often continue living in the property under a life estate or right of occupancy, and may continue to claim property tax benefits such as the School Tax Relief exemption when the trust is structured correctly. Davies emphasizes that the average annual cost of nursing home care in the Syracuse area is approximately $169,752, and the need for care can arise suddenly after a stroke, fall, or diagnosis of dementia. Starting the planning process well before a health crisis gives the five-year clock the maximum time to run and provides families with the strongest protection.
For Syracuse families weighing long-term care planning, consulting an experienced elder law attorney can help clarify how a living trust may protect the home and savings under Medicaid rules.
About Davies Law Firm:
Davies Law Firm is a Syracuse-based law firm focused exclusively on estate and long-term planning, including Medicaid Asset Protection Trusts, elder law, and trust administration. Led by attorneys Frederick P. Davies and William P. Davies, the firm serves families throughout Onondaga County, Cayuga County, and Madison County. For consultations, call (315) 472-6511.
Email: mail@davieslawfirm.com
Media Contact
Name
Davies Law Firm
Contact name
Frederick P. Davies
Contact phone
(315) 472-6511
Contact address
210 E Fayette St
City
Syracuse
State
NY
Zip
13202
Country
United States
Url
https://davieslawfirm.com/
