What Is a Medicaid Asset Protection Trust?

Who can benefit from a Medicaid Asset Protection Trust (MAPT)

You can now set up a Medicaid Asset Protection Trust (MAPT) in Minnesota, but do you need one? If you are wondering how you will be able to afford your future care needs or how you can protect your beneficiaries, you may want to consider a MAPT. An experienced Medicaid attorney can answer all your questions and help you set up a MAPT.

If you’re considering applying for Medicaid or setting up a MAPT for yourself or a loved one, call us today! We can help you through this process.

What You’ll Learn From This Video

• How a Medicaid Asset Protection Trust (MAPT) can help you plan for the future

• Why someone may want to get a Medicaid Asset Protection Trust (MAPT)

• When to hire an attorney to help set up a Medicaid Asset Protection Trust (MAPT)

HERE IS THE TRANSCRIPT FROM THIS VIDEO

Margaret Barrett: What is a Medicaid Asset Protection Trust? That is a great question, especially in Minnesota. Most Minnesotans are unfamiliar with this term. That’s because Medicaid Asset Protection Trusts have only been allowed by the Department of Human Services since a July 2021 Court of Appeals decision in the Geyen case. Our lead attorney for asset protection and Medicaid, Michael Teeter, wrote part of the legal brief in the Geyen case arguing that DHS’s denial of Medicaid Asset Protection Trusts was unconstitutional, and the Minnesota Court of Appeals agreed. This is a very big deal because now Minnesota residents have the same option that the residents of the other 49 states have had for quite a while. So, what are the pros and the things to think about with a Medicaid Asset Protection Trust? First, a Medicaid Asset Protection Trust has the same protections as a living, revocable trust. You can protect your beneficiaries, choose your trustees, decide how you want the money to be spent, and there is creditor protection in case of bankruptcy, divorce, or things like that. Next, anything that you put in a Medicaid Asset Protection Trust more than five years before you apply for Medicaid to pay for long-term care will not be counted as an asset. Third, that means you don’t need to spend all your money on the nursing home. You can benefit yourself, your spouse, your loved ones, and still ensure that you get good care and you qualify for Medicaid so the state pays its share of your care. Fourth, that means the state pays its share of your care sooner. So those are the four pros of the Medicaid Asset Protection Trust. Now, let’s talk about some things you should think about. First, the money that you put into a Medicaid Asset Protection Trust is an irrevocable gift. You cannot take it back, and you are not going to be the beneficiary nor will you be a trustee of the trust. Second, it’s important that you make this gift five years, or 60 months, before you actually apply for Medicaid. Now, if something unexpected happens and you end up applying sooner, we can make a plan for how to cover that. But ideally, you will make this gift five years before you apply or longer. Planning to protect your assets and apply for Medicaid in Minnesota is complex and individualized. So it is important to work with an elder law attorney who is experienced and proactive in doing this type of planning. Medicaid Asset Protection Trusts are an important new tool to keep you from spending all your money on the nursing home in Minnesota. There are other tools including newer Medicaid-compliant annuities. Planning to protect assets and qualify for Medicaid is complex and individualized, so it’s important to work with an elder law attorney who is experienced and proactive in this type of planning. Medicaid Asset Protection Trusts are an important new tool that allows you to not spend all your money on the nursing home in Minnesota. There are other tools such as Medicaid-compliant annuities that are also newer. At Safe Harbor Estate Law, we use all of the tools in the tool chest to help you, including Medicaid Asset Protection Trust. We can help you decide which options work best for you. Call us today and we can help you and your family determine what is the best solution for you.