A Medicaid Asset Protection Trust (MAPT) is a type of irrevocable trust that can help individuals protect their assets and qualify for Medicaid benefits to pay for long-term care costs.
To qualify for Medicaid benefits, a person must have limited income and assets. By placing assets into a MAPT, an individual can effectively remove those assets from their estate and potentially qualify for Medicaid benefits to pay for long-term care costs. The assets in the trust are managed by a trustee and can be used to pay for the individual’s care needs, while still protecting those assets from being depleted.
There are certain restrictions and requirements for setting up a MAPT, and the rules may vary by state. Generally, the trust must be set up and funded at least five years before the individual applies for Medicaid benefits, and the assets in the trust cannot be used for the individual’s personal benefit during that time. In addition, the individual must be willing to give up control of the assets placed in the trust, as the trustee will have discretion over how the assets are used.
While a MAPT can be an effective strategy for protecting assets and qualifying for Medicaid benefits, it is important to work with a qualified attorney to ensure that the trust is set up properly and complies with all applicable laws and regulations.
Click here to visit RELEP’s Elder Law and Medicaid webpage.