Medicaid asset protection trust

TH-cam Description for Medicaid Asset Protection Trusts
What is a Medicaid Asset Protection Trust (MAPT)?
A MAPT is a legal tool that can help you qualify for Medicaid while protecting your assets for your loved ones.
Why do you need a MAPT?
Medicaid has strict asset limits. If you have too many assets, you may not be eligible for Medicaid, even if you need long-term care. A MAPT can help you meet these asset limits.
How does a MAPT work?
You create an irrevocable trust and transfer your assets into it. This means you give up control of your assets. The trustee, who manages the trust, cannot be you or your spouse.
Benefits:
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Qualify for Medicaid without spending down your assets.
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Protect your assets from Medicaid Estate Recovery after you pass away.
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Preserve assets for your beneficiaries.
Shortcomings:
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Must be created at least 5 years before applying for Medicaid in most states.
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Can be expensive to set up.
Important Considerations:
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Consult with an elder law attorney to ensure the MAPT is set up correctly.
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MAPT rules vary by state. For instance, California has eliminated the asset limit for Medicaid, so MAPTs are not necessary in that state.
Alternatives to MAPTs:
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Spending down assets
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Irrevocable Funeral Trusts
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Medicaid Compliant Annuities
This video will explain everything you need to know about Medicaid Asset Protection Trusts, including:
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The different types of trusts
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How to choose the right trustee
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The benefits and drawbacks of MAPTs
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The costs involved in setting up a MAPT
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Alternatives to MAPTs
Please note: This information is for educational purposes only and should not be considered legal advice. Consult with an attorney to discuss your specific situation.