Medicaid Asset Protection Trust

4 Dec 2023 · 1 min

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1:01

In this concise explanatory video, the presenter defines a Medicaid Asset Protection Trust (MAPT) and contrasts it with revocable trusts. He explains that revocable trusts, while useful for estate planning, do not shield assets from creditors, bankruptcies, or Medicaid eligibility determinations. An irrevocable MAPT, however, can remove a home from the asset pool used to qualify for Medicaid, provided the home remains in the trust for at least five years. After this period, the home is fully exempt from Medicaid’s means‑test. Upon the grantor’s death, the property passes directly to the named beneficiaries and avoids probate, mirroring the distribution benefits of a revocable trust but with added asset‑protection advantages.

Chapters

A Medicaid asset protection trust. What is it? What can it do for you? Do you need one? I've talked about this in other videos, but I'll talk about it a little more depth today for you. As I've said before, every trust is either revocable or irrevocable. A revocable trust does a lot of good things for you, but it does not provide protection from liability or creditors, bankruptcies, and from Medicaid. A Medicaid asset protection trust prevents Medicaid from considering your home as an asset that can be counted in the process of qualifying you for Medicaid benefits. A Medicaid asset protection trust guards against that. Once you've had your home in one of these trusts for 5 years, then essentially that home is totally exempt from the Medicaid qualification process. And at your death, it will go to your beneficiaries just like it would in a normal revocable trust. And the home will also pass outside probate, just like in a normal revocable trust.