Long-term care is an essential issue to consider when creating an estate plan. If you did not apply for long-term insurance at an early age and are facing considerable out-of-pocket expenses that could deplete your life savings, a Medicaid Asset Protection Trust (MAPT) may be the answer. This offers a way to protect assets from being counted when you apply for Medicaid. Because Medicaid is a needs-based program, you will only be eligible if your assets are below $2,000 as an individual or $4,000 as a married couple. This type of trust allows for the transfer of your assets so they are no longer viewed as yours, while also preserving them for your children or other beneficiaries – as you see fit.
Interested in learning more about Medicaid Asset Protection Trusts? Contact the Utah estate planning lawyers at Pearson Butler for a confidential consultation.
How Does a Medicaid Trust Work?
Medicaid Asset Protection Trusts, also referred to as Medicaid Planning Trusts or simply Medicaid Trusts, are specifically designed to be Medicaid-compliant.
To be compliant, they must meet the following requirements:
- The trustmaker (the person who creates the trust) cannot be the principal beneficiary.
- The trust must be irrevocable, which means it cannot be changed or cancelled.
- The trustmaker or his/her spouse cannot be the trustee (the manager of the trust).
- Specific requirements must be in place so the trustee cannot spend trust funds on him/herself.
- The trust must be established at least five years prior to applying for Medicaid.
Benefits of a Medicaid Planning Trust
A Medicaid Planning Trust can offer a few key benefits:
- You do not have to “spend down” your assets to meet Medicaid’s asset qualifications.
- Your assets will be protected from Medicaid estate recovery and reserved for your beneficiaries.
- You may be able to place your home in a Medicaid Trust and reside there for as long as you live.
- You can name the trustee of your choosing, as long as it is not your spouse.
If you would like to find out if a Medicaid Trust is right for you, your best option is to consult with an experienced estate planning attorney. The team of attorneys at Pearson Butler has over 300 years of collective experience and can provide accurate insight to help you make the right choices about your or a loved one’s long-term care.
Contact Pearson Butler today at (800) 265-2314 to learn more about Medicaid Asset Protection Trusts. The firm serves all of Utah from offices in Bountiful, South Jordan, and American Fork.