medicaid and medicare forms

Here’s Why You Should Include a Medicaid Asset Protection Trust in Your Estate Plan

Planning for long-term care is an essential part of any estate plan. One component of such long-term care is continued eligibility for Medicaid. Learn how a Medicaid Asset Protection Trust can protect your eligibility for Medicaid down the line.

What Is a Medicaid Asset Protection Trust?

Medicaid is a needs-based program that is only eligible for individuals with assets below $2,000. A Medicaid Asset Protection Trust (MAPT) keeps a Medicaid applicant’s assets from being counted for eligibility purposes. This ensures that a person who would otherwise be ineligible for Medicaid remains eligible and receive the care they need.

A MAPT works by allowing the transfer of assets so they are no longer viewed as yours while preserving them for beneficiaries according to your wishes. In order for a MAPT to be compliant, it must meet the following criteria:

  • The trustmaker, as well as their spouse, cannot be the principal beneficiaries.
  • The trust cannot be changed or cancelled.
  • The trustmaker cannot spend the funds on themselves.
  • The trust must be established at least five years before applying for Medicaid.

In addition to guaranteeing your eligibility for Medicaid, a MAPT also protects beneficiaries from Medicaid estate recovery, which occurs after the death of a Medicaid recipient to reimburse the state for the costs paid for the recipient’s long-term care.

Need Help with Estate Planning? Contact Us Today

Estate planning is a complicated process and requires the guidance of an experienced legal professional. Our estate planning attorneys at Pearson Butler are ready and able to help you execute an estate plan that meets your needs.

Call Pearson Butler at (800) 265-2314 to schedule a consultation.