Overview
A MAPT protects assets from being counted for Medicaid eligibility while preserving them for your family. Assets transferred to the trust are no longer "yours" for Medicaid's asset test, allowing you to qualify for long-term care coverage. Must be established at least 5 years before applying for Medicaid.
Best For
- Those planning for potential long-term care needs
- Adults over 50 wanting to protect assets early
- Families wanting to preserve inheritance from care costs
- Homeowners wanting to protect their residence
Key Features
- ✓ Protects assets from Medicaid spend-down
- ✓ Can retain right to live in transferred home
- ✓ Preserves step-up in basis for heirs
- ✓ Income can still flow to grantor
- ✓ Protects assets for family inheritance
- ✓ Independent trustee manages assets
📊 Tax Benefits
- ✓ Step-up in basis preserved at death
- ✓ Property tax exemptions can be maintained
- ✓ Income tax neutral during grantor's lifetime
- ✓ Assets pass to heirs outside probate
Considerations
- Must plan 5+ years before needing Medicaid
- Irrevocable — cannot take assets back
- Cannot sell home without trustee cooperation
- Income from trust assets may affect Medicaid eligibility
- Medicaid rules vary significantly by state
- Early planning is critical