Protecting Your Assets: Understanding Medicaid’s Five-Year Look-Back Rule

Illinois families planning for long-term nursing home care should understand Medicaid’s five-year look-back rule. When someone applies for long-term-care benefits, financial transactions from the previous 60 months—including gifts, below-market sales and transfers to trusts—may be reviewed. Transfers that violate the rules can delay coverage and leave families responsible for care costs. Asset-protection trusts may help in some cases, but they are generally irrevocable and require advance planning.