Medicaid Asset Protection Trusts

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Do you want to prevent your assets from being used for long term nursing home or long term in home medical care?  Do you want to prevent the State from taking your home or placing a lien on it after your death so that your children can inherit your home?  If so, planning ahead is the best option.  

One option is to purchase long term-care insurance, if you can afford it.  Many policies cost tens of thousands of dollars per year.  Another, much more affordable option is the Medicaid Asset Protection Trust or MAPT.  A MAPT is a less expensive option and can be a highly effective asset preservation tool. 

• Your trust can own all of your other assets, including your home.
• You still retain the right to live in your home.
• Your assets can be protected from creditors.
• Your assets need to be in the trust for five years before receiving Medicaid assistance (the 5-year lookback period).
• Your children or other trusted family members can be the trustees of the trust but you can not serve as trustee and still protect your assets.
• Once your assets are protected in the trust, you can still receive long term care and the State can not access the assets in the trust, leaving more money for your care.  Whatever assets are not used for your care can be passed to your heirs without estate recovery.

Who Should Have a Medicaid Asset Protection Trust?

As a Tennessee elder law attorney, Meredith Silva may recommend a Medicaid Asset Protection Trust for you or your loved one if you:

• want to preserve assets for yourself, your spouse or other family members in the event they may need long term care
• may require Medicaid benefits for long-term nursing home care in the future, even if current health is not an issue
• do not have long-term care insurance
• do not have over $7,000 per month to pay for long term care or do not want to deplete all your assets should you need long term care
• have family or friends that you trust, such as adult children, who can serve as trustee(s)

You do not need to put everything you own into a Medicaid Asset Protection Trust. You can keep as much of your assets as you desire outside the Trust, in order to maintain your financial independence.  Any assets that you wish to keep outside the irrevocable Trust can be placed in a separate living trust (a type of revocable trust) in order to avoid probate.

A Medicaid Asset Protection Trust is highly complex, and should be discussed with, designed and drafted by an experienced Tennessee elder law attorney.  Contact Meredith Silva at 615-258-5541 or meredith@msilvalaw.com to discuss your Medicaid Planning options and protecting your assets in a Medicaid Asset Protection Trust.