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Most trusts, even irrevocable ones, no longer work to qualify an individual for Medicaid. Individuals who have assets in excess of the allowable Medicaid limits have limited options today when it comes to qualifying for Medicaid. This most often comes up when older folks are trying to qualify for nursing home or other long-term coverage, since even those with a fair amount of assets can't afford the high cost of nursing homes. The obvious option of giving away assets to others will result in Medicaid transfer penalties that will prevent the individual from qualifying for Medicaid for a period of time. This is true with giving away assets to most trusts as well. Revocable Trusts Many people are under the mistaken belief that a transfer of an asset to a revocable trust will help the individual qualify for Medicaid. Assets held in a revocable trust are always treated as still being owned by the individual for purposes of Medicaid eligibility. The reason these transfers do not help with eligibility is because the individual still controls the asset in a revocable trust, either by retaining the right to revoke the trust or by retaining the power to control the disposition of the assets (for example, being able to spend the money), such as by acting as trustee of the revocable trust.