← Back to Learning Center

Medicaid Asset Protection Trust (MAPT)

What is it?

A MAPT is an irrevocable trust designed to protect assets from being counted for Medicaid eligibility purposes. Assets transferred to the trust are no longer considered "yours" for Medicaid's asset test, potentially allowing you to qualify for Medicaid coverage of long-term care costs while preserving assets for your family.

Why is it important?

Long-term care can cost $100,000+ per year, and Medicaid requires you to spend down nearly all assets before qualifying. A MAPT protects assets from this spend-down, but you must plan ahead—Medicaid has a 5-year "look-back period." Assets transferred more than 5 years before applying for Medicaid are generally protected. Early planning is critical.

Example Language

The Grantor transfers their home and investment accounts to this irrevocable trust. The Grantor retains the right to live in the home (preserving the property tax exemption and step-up in basis). After the 5-year Medicaid look-back period, these assets will not be counted toward Medicaid eligibility, protecting approximately $500,000 for the Grantor's children.