The Importance Of Medicaid Asset Protection Trusts
The Medicaid asset protection trust (MAPT) is an integral estate planning tool often used by New York individuals without long-term care insurance who wish to protect their assets while obtaining Medicaid benefits. Generally, a MAPT will include the creator’s apartment or real estate, as well as other significant assets they own. Some people are hesitant at the idea of a MAPT because they fear it means losing control over their finances and assets. In reality, a well-executed MAPT offers many benefits, and actually provides you with more control over your assets.
As an elder law and estate planning attorney with more than 25 years of experience, I understand the emotional and financial stress that future planning can bring. I work closely with clients to identify individual needs, and develop a customized plan that achieves their legal goals.
If you need to apply for Medicaid and want to make sure your assets remain protected, please contact my Manhattan office today to schedule a consultation at 212-385-1951.
What Are The Benefits Of A MAPT?
In addition to protecting your money from Medicaid, a MAPT is also used to avoid probate issues and governs how your property is bequeathed upon your passing. Other benefits of a properly drafted MAPT include:
- Allowing you to live at home and receive care
- Protection from creditors
- Preserving capital gain tax exclusions on the future sale of your home
- Permitting the sale of your current home for the purchase of a new home
- Deciding who your beneficiaries are and what their allocations will be
- Ability to update or change your beneficiaries
When you create a MAPT, the way in which you control your assets will change, as you will name a trustee to control and manage the trust on your behalf. There are many important factors to consider when electing your trustee. As an experienced asset protection lawyer, I will help you identify those variables and work through potential conflict, so you feel confident making informed financial and estate planning decisions about the future.
Avoid Medicaid Issues With A MAPT, Get Started Today
There is a five-year look back period once a MAPT is established. Property transferred into the trust is exempt from being collateral for long-term care five years after the MAPT is created. So, the sooner you begin planning, the better.