Can the rich get Medicaid

31 Jul 2024 · 1 min

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In this segment, the speaker explains that wealthy individuals can still qualify for Medicaid by using a Medicaid Asset Protection Trust (MAPT). The MAPT allows assets—such as a million‑dollar home—to be transferred out of the donor’s name while still permitting the donor to live in the home. This strategy enables eligibility for Medicaid without having to sell the home, liquidate assets, or deplete savings. The speaker outlines two major caveats: (1) a mandatory five‑year look‑back period, meaning the trust must be established at least five years before Medicaid is needed, and (2) loss of direct control over the assets, as a trustee (often a child) will manage them. These points illustrate both the benefits and the practical constraints of using a MAPT for Medicaid qualification.

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If you believe this, you haven't been paying attention. People with a lot of money can still qualify for Medicaid benefits. One of the primary ways of being able to do this is through a Medicaid asset protection trust. This is a type of trust that allows you to transfer assets out of your name, but still use the asset during your lifetime. You can put your million-dollar house into this type of trust, which would remove it from your name, and you would still be able to live in it. This allows people to qualify for Medicaid benefits and not have to sell their home, not have to liquidate their assets, and not have to deplete their life savings. There are some downsides to this, and the first is timing. You've got to put your assets into a Medicaid Asset Protection Trust at least 5 years before you need to qualify for Medicaid benefits. So you need to do it while you're still in good health. You will also lose direct control over any asset that you put into this type of trust. The trustee of the trust will have control, and for that reason, many people appoint one of their children as the trustee.