What Is a Medicaid Asset Protection Trust—and Is It Right for You?
Erin Fontana

Lately, I’ve had many conversations with clients and families about planning for long-term care, and one question keeps coming up: How can I protect my assets while still qualifying for Medicaid? One solution that’s gaining traction is the Medicaid Asset Protection Trust (MAPT). If you're thinking about long-term care planning for yourself or a loved one, here's a helpful breakdown of what a MAPT is—and how it might fit into your strategy.

What Is a Medicaid Asset Protection Trust?

A MAPT is a type of irrevocable trust designed specifically to protect assets from Medicaid’s financial eligibility rules. When you place assets—like your home, savings, or investments—into a MAPT, they no longer count toward Medicaid’s strict asset limits. This can allow you to qualify for Medicaid benefits without spending down everything you’ve worked hard to save.

But there’s a catch: the trust must be set up at least five years before applying for Medicaid long-term care benefits. This is due to Medicaid’s “look-back” period, which penalizes transfers of assets made within five years of application. Additionally, once the trust is created and assets are placed in it, they cannot be taken back or used for your personal benefit.

Key Benefits of a MAPT

While MAPTs aren't one-size-fits-all, they offer several compelling advantages:

  • Preserves assets for heirs: Instead of spending down your estate on care, you can pass it on to your loved ones.

  • Avoids unnecessary spend-down: Helps you meet Medicaid eligibility without depleting your resources.

  • Protects from estate recovery: Medicaid can’t claim assets held in the trust after your passing.

Is a MAPT Right for You?

A MAPT can be a powerful planning tool, but it's not the only one. Depending on your age, health, and financial situation, alternatives such as Medicaid-compliant annuities or long-term care insurance might be a better fit.

It’s important to consult with an experienced elder law attorney or financial advisor to determine what strategy aligns with your long-term goals.

Have Questions?

If you’re considering a MAPT or just starting to think about long-term care planning, I’d be happy to help answer your questions and walk you through your options. Don’t hesitate to reach out.