What is a MAPT?

We’re all going to need some care in our elderly years.

Sometimes known as “MAPT,” a Medicaid Asset Protection Trust is an estate planning tool useful to those at or near retirement age. If a client is in good health and in no immediate need of Medicaid care, this trust offers an opportunity to set aside and protect assets.

There are both benefits and drawbacks that must be understood when considering this type of trust.

On the positive side, family assets are protected and will not become an obstacle to qualifying for Medicaid. Because the funds have been set aside and are out of the client’s control, they cannot be counted as an asset in a Medicaid assessment. This trust also allows individuals to set aside funds for long term care in the future—often a desired alternative to costly long term care insurance.

However, placing assets into an “irrevocable trust” means the client loses a significant amount of control over those resources, shielding it from Medicaid recovery. As a grantor, they relinquish the ability to move any of the trust property back into their name. There is also a 5-year lookback period that Medicaid can use to determine eligibility, meaning that a client should set this plan into place in a timely manner before health issues arise.

Thoughtful estate planning will allow you to assess whether this is the right tool for you and to take advantage of protections that might make all the difference for you and your family. The team at Hillsborough Wills & Trusts has the expertise to help you Build Your Circle of Security through strong legal documents and good counsel. We are here to help you succeed! Contact us at: https://hillsboroughwills.com/contact