Medicaid Asset Protection

5 Oct 2023 · 1 min

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0:48

In this advisory video, the speaker outlines a two‑step plan to keep a homeowner’s primary asset—their house—from being seized by Medicaid after a nursing‑home stay. First, he urges viewers to seek long‑term care (LTC) insurance, noting that few carriers offer it, it is costly, and qualifying is difficult. Second, he recommends placing the home in a Medicaid Asset Protection Trust (MAPT). Once the home has been in the MAPT for a five‑year look‑back period, Medicaid cannot claim it, but the protection only applies if the five years elapse before the need for long‑term care arises. The speaker stresses the importance of acting early while the five‑year window is still likely.

Chapters

You're about to hear my plan to protect your biggest asset from government recovery. For many of you, your biggest asset is your home. You worked your entire life for it and you poured most of your money into it. But if one day you have to go to a nursing home, the first thing you'll have to do to get benefits is to give the government a copy of your deed. Let's make sure that doesn't happen. First thing you need to try to do is get long-term care insurance. Here's the problem: carriers that offer it are very few, it is very expensive, and it's very hard to qualify for it. Step 2 of this plan would be to put your home in a trust that protects it from Medicaid recovery. It's called a Medicaid Asset Protection Trust. Once the home is in that trust and it's been there for 5 years, the government cannot get to it. Downside is if you don't make it 5 years before needing long-term care. If that happens, there is no protection. So look into this early while the chances are high that you still have 5 years before you'll need the care.