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Medicaid Asset Protection Trusts

Planning For Medicaid Benefits

Medicaid is the only government program that covers long-term care. A Medicaid Asset Protection Trust (MAPT) shields assets from Medicaid so they can be preserved for designated beneficiaries after one passes away.

Why Might Someone Need A Medicaid Asset Protection Trust?

  • If they didn’t purchase long-term care insurance

  • If they failed to save enough to cover the cost of long-term care, whether it is at home or in a nursing home facility

  • Medicaid eligibility in New York requires limited assets. Unless someone has a Medicaid Asset Protection Trust, the only way to qualify for Medicaid long-term care is for them to spend all their money paying for nursing home care or to rid themselves of assets. 

Additional Ways A MAPT Can Work For You

Once the MAPT contains one’s assets, Medicaid cannot count it as an asset they own or that may be seized to cover the costs of their care.

When properly established, a Medicaid Asset Protection Trust allows the capital gains tax exclusion to apply to one’s primary residence. And, the MAPT will preserve the appreciated value of the home as well as the step-up in basis because the value will be determined on the date of the homeowner’s death. 

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