A Medicaid Asset Protection Trust (MAPT) is a particular type of trust that allows you to protect your assets while still qualifying for Medicaid benefits. With a MAPT, you can keep your assets in the trust and use them to pay for your needs without risking disqualification from Medicaid. A MAPT is the smart way to protect your assets while still receiving Medicaid benefits.
What is a Medicaid Asset Protection Trust?
A Medicaid asset protection trust is a legal tool that holds your assets. The trust owns the assets you place in it. This means that Medicaid does not count the assets in the trust when they decide if you can get benefits.
How Does a MAPT work?
When you create a MAPT, you transfer your assets to the trust. The trust will use these assets to pay for your care. You can use the trust to pay for anything Medicaid would generally pay for, including nursing home care, home health care, and hospice care.
A MAPT trust is also a great way to protect your assets if something happens to you and you need long-term care. Your trust can help keep your assets from being used to cover the cost of your care. Instead, you qualify for Medicaid benefits that cover the cost of your long-term care.
Anyone can set up a MAPT. The trustee of a MAPT can use the assets in the trust to pay for your care, and you can also receive income from the trust. However, your payments cannot be over the Medicaid income eligibility limits. You cannot direct how the trustee spends the money or access the trust’s assets once you’ve funded it.
Since you draw up the trust terms with your attorney and they legally must follow what you have put in place, you don’t need to worry.
What are the benefits of a MAPT?
There are many benefits to setting up a MAPT. Your trust gives you added income to use for expenses beyond what Medicaid covers. Some of the key benefits of setting up a MAPT include:
- The trust can help protect your assets if something happens and you need long-term care
- You can keep your assets while still qualifying for Medicaid benefits
- The trust can use your assets to pay for anything you need
- You can keep your assets in the trust and use them to pay for your care without risking disqualification from Medicaid.
- The trustee can use the assets in the trust to pay for your care without needing approval from you or the Medicaid agency.
- You can choose any trustee you want, including a family member or friend.
Can the Trust Continue After I Die?
The trust can continue to exist after you die, allowing your heirs to receive the assets in the trust. You write the terms of the trust, which state when and how heirs receive distributions from the trust.
How Much Does It Cost to Set Up a MAPT?
There is no set cost to set up a MAPT. However, there are some costs associated with creating and maintaining the trust. You will likely need to hire an attorney to help you make the trust and advise you on using it. The attorney’s fees will vary depending on where you live and the complexity of your trust. You may also need to pay for other legal documents, such as a will or power of attorney.
You may also want to consider using a particular type of attorney called an “Asset Protection Attorney” to help you set up your trust. Their expertise in Medicaid rules and regulations allows them to set up your trust correctly and ensure that you take advantage of all the benefits available to you.
What if I Need to Revoke the Trust?
If you need to revoke the trust, you can file a written notice with the court. The trustee must then distribute all of the assets in the trust to you or your heirs. You should also notify Medicaid of the revocation, as they may need to update their records. Revoking a MAPT can be a complicated process, so it is essential to speak with an attorney if you are considering this.
Protect Your Assets
So, if you’re looking for a way to protect your assets from being used to pay for long-term care, a Medicaid asset protection trust could be the right solution for you. These trusts can help you keep your assets while still qualifying for Medicaid benefits. Contact an asset protection attorney to learn more about how a MAPT could work for you.
We Can Help
If you’re interested in creating a Medicaid Asset Protection Trust, contact us at Vail Gardner Law today. Our focus on asset protection strategies and Medicaid planning gives us the knowledge we need to help you plan well for your future. We work with you to create a trust that meets your specific needs and allows you to protect your assets while still receiving Medicaid benefits.