IRA/Irrevocable Trust

I discuss in my book ( the technique of converting an IRA to an irrevocable Medicaid annuity inside the IRA. That avoids withdrawing the money from the IRA, which is what causes the taxation issue your lawyer mentioned. I don’t see how you can go further than that, such as then removing it to fund an irrevocable trust, without it being deemed a distribution of the IRA to you personally, and thus income taxable.

If you wish to pay the tax and withdraw it, then fund an irrevocable trust, you’d have to wait out the 5-year lookback period, but then all that money would be protected from Medicaid (assuming the trust is properly drafted for this purpose).