When it comes to asset protection in New York, one of the most powerful legal tools available is the irrevocable trust. Whether you are planning for long-term care, safeguarding your estate from unnecessary taxes, or ensuring your loved ones inherit without delay, an irrevocable trust may be the right solution.
Hynes & Chu, LLP, our experienced elder law and estate planning attorneys have helped countless New Yorkers secure their assets and gain peace of mind. This guide will explain how irrevocable trusts work, why they’re valuable for asset protection, and how our team can help you set one up.
An irrevocable trust is a legal arrangement where you, the grantor, transfer ownership of assets—such as real estate, investments, or savings—into a trust managed by a trustee. Unlike a revocable trust, once an irrevocable trust is established, it generally cannot be changed, amended, or revoked.
While that might sound restrictive, the permanence of an irrevocable trust is exactly what makes it so powerful for asset protection in New York. Because you no longer legally own the assets placed inside the trust, they are generally shielded from creditors, lawsuits, and certain long-term care costs.
The cost of long-term care in New York can be overwhelming. Without proper planning, many families are forced to spend down their life savings before qualifying for Medicaid.
By placing your assets into an irrevocable trust at least 5 years before applying for Medicaid, you may protect your home and savings from being counted toward eligibility. This means your assets remain preserved for your spouse, children, or other beneficiaries, instead of being consumed by care costs.
Since the assets are no longer in your name, they are typically out of reach from creditors or legal claims. For professionals, business owners, and individuals concerned about liability, this layer of protection can be invaluable.
When you pass away, assets held in an irrevocable trust do not go through the lengthy and public probate process. Instead, they are distributed directly to your beneficiaries, saving time, money, and stress for your family.
For high-net-worth families, irrevocable trusts can also reduce estate taxes. By transferring assets out of your taxable estate, you may significantly reduce the estate tax burden on your heirs.
Perhaps the greatest benefit is knowing that your hard-earned assets will go exactly where you intend. An irrevocable trust allows you to set clear instructions and ensures your family’s financial future is secure.
- Primary residence or vacation homes
- Bank accounts and savings
- Investment portfolios
- Life insurance policies
- Family heirlooms or valuable personal property
Many New Yorkers confuse revocable trusts and irrevocable trusts. Here’s the key distinction:
Revocable Trust: You retain full control and can change or revoke it at any time. However, assets are still considered part of your estate and vulnerable to creditors or Medicaid.
Irrevocable Trust: You give up ownership and control, but in exchange, your assets receive the highest level of protection.
For those focused on asset protection in New York, irrevocable trusts are usually the better choice.
New York Medicaid has a 5-year look-back period, meaning any asset transfers made within five years of your Medicaid application could be penalized.
This is why early planning with an elder law attorney is essential. The sooner you establish an irrevocable trust, the sooner your assets are shielded and your eligibility for Medicaid can be preserved.
Q: Can I still live in my home if I put it in an irrevocable trust?
Yes. In most cases, you can continue to live in your home while it’s held in the trust.
Q: Can I receive income from assets in the trust?
Yes, depending on how the trust is structured, you may still receive income from investments.
Q: Who should I choose as trustee?
You may appoint a trusted family member, friend, or professional trustee. It’s important to select someone responsible and reliable.
Setting up an irrevocable trust is a complex legal process. A poorly drafted trust could fail to protect your assets—or worse, disqualify you from Medicaid benefits. At Hynes & Chu, LLP, our attorneys bring decades of experience in:
Elder law – Helping seniors and families navigate Medicaid and long-term care planning.
Estate planning – Ensuring your wealth is passed on efficiently and securely.
Asset protection – Crafting strategies tailored to New York’s laws and your unique financial situation.
We take the time to understand your goals, explain your options clearly, and create a trust designed to maximize protection for your family’s future.
Your assets represent a lifetime of hard work. Don’t leave them unprotected. An irrevocable trust can safeguard your wealth, preserve your family’s inheritance, and help you prepare for the future with confidence.
At Hynes & Chu, LLP, we are here to guide you every step of the way. Whether you’re planning ahead for Medicaid eligibility or simply want to protect your home and savings, our team has the experience and compassion to help.
At Hynes & Chu Law LLP, we specialize in estate planning, elder law, and asset protection — providing personalized legal solutions with care, integrity, and experience.
