Protect your Home

27 Feb 2024 · 1 min

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0:48

In this short presentation, the speaker outlines a two‑step strategy to shield a primary residence from Medicaid’s asset recovery when a person later requires long‑term care. First, he advises attempting to obtain long‑term care (LTC) insurance, noting that carriers are few, premiums are high, and qualification is difficult. Second, he recommends placing the home into a Medicaid Asset Protection Trust (MAPT). Once the home has been in the MAPT for a five‑year look‑back period, Medicaid cannot claim the property, provided the owner does not need care during those five years. The speaker stresses the importance of acting early, because if long‑term care is needed before the five‑year period ends, the trust offers no protection.

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.