This week I got a few questions about a popular tool in estate planning: the Medicaid Asset Protection Trust—also known as a MAPT. If you’ve ever wondered what it is, why people use it, and whether you should consider one, this newsletter is for you.
🛑 The Problem: Long-Term Care Is Expensive
Let’s start with the big issue:
Long-term care is not cheap—think $6,000/month or more.
You can pay for it out of pocket, use long-term care insurance, or rely on Medicaid.
But to qualify for Medicaid, you typically have to spend down your assets to near-poverty levels—$3,000 or less as a couple.
And even if you do qualify, Medicaid can put a lien on your home to recoup costs after your death.
So what can you do?
✅ The Solution: A Medicaid Asset Protection Trust
A MAPT is an irrevocable trust designed to shield your home from being counted as an asset when applying for Medicaid.
Here’s how it works:
You transfer ownership of your home into the trust.
You retain the right to live in the home for the rest of your life.
You appoint one of your children (or another trusted individual) as the trustee.
After 5 years, the home is completely protected from Medicaid recovery.
🧠 Bonus: Medicaid won’t see this asset. And they can’t place a lien on the house to recover expenses later.
💡 Who Is This For?
This type of trust is ideal if:
You’re in your 60s or early 70s
You’re in relatively good health
Your home is your biggest asset
You want to ensure your kids or heirs receive the home’s full value
If you wait until a health crisis hits (e.g., fall, hip surgery, rehab, and sudden nursing home needs), it’s often too late to take advantage of this strategy.
📌 Key Details to Know
The trust must be irrevocable—you can’t change it once created.
You can’t be the trustee, but you can name your children or someone you trust.
The trust must be established at least 5 years before applying for Medicaid.
Once the 5-year clock runs out:
✅ The home won’t count against you for Medicaid qualification
✅ Medicaid cannot put a lien on it
✅ Your kids inherit the full value—no strings attached
🔐 Protect What You've Built
If you’re trying to protect the value of your home—and preserve it for your family—a Medicaid Asset Protection Trust is one of the strongest tools available.
But you need to plan ahead. This is not something that can be rushed during a crisis.
🌎 Live in Alabama, Florida, or Mississippi?
If you’re in one of these states, I can help you set this up personally.
📅 Book a paid consultation (AL, FL, or MS only)
Found this helpful? Share it with someone in their 50s, 60s, or 70s who wants to protect their most valuable asset—before it’s too late.
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