Irrevocable Grantor Trust vs Revocable Living trust

Planning

Hope this is appropriate to ask here. I have an 85-year-old father who has a home worth a few hundred thousand dollars and about that much again in savings. Thankfully he is still living on his own and in pretty good shape physically and mentally. My brother and I are working on protecting his assets and we had an estate attorney break down for us that we basically had to choose between protecting his assets from Medicaid but paying capital gains if/when we sell his house one day (no step up in revocable living trust), or being granted a step-up in value upon death and thus avoiding taxes, but risking losing his entire estate to Medicaid if he ends up needing long term care. I am just looking for any affirmation that this is correct framing, or any insight into alternate ways of thinking about this. If it matters, he lives in Delaware. He also has a reliable monthly income between a pension and soc security that covers roughly 85 percent of monthly costs in the assisted living community he is thinking about moving into. Thank you for any thoughts!

Posted Apr 2, 2026, 10:32 PM UTC

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