Ask Todd: Life Estates vs. Irrevocable Trusts: What Are You Really Giving Up?

On this week’s Ask Todd, Todd Lutsky breaks down the real differences between life estates and irrevocable trusts — and why the “quick fix” solution isn’t always the best one.Todd explains:How much control you actually give up with a life estateWhy irrevocable Medicaid trusts are often used to protect assets from long-term care costsThe five-year lookback rule and what it means for nursing home planningCapital gains consequences when selling property held in a life estateWhat happens when a parent leaves property to just one child — and how gift tax rules apply if proceeds are sharedIf you own property, are worried about long-term care costs, or already have a life estate in place, this episode walks through the pros, cons, and tax implications you need to understand.