Understanding asset protection and healthcare eligibility can be challenging for many individuals. A Medicaid Asset Protection Trust (MAPT) offers a strategic solution to this dilemma, allowing for the preservation of personal wealth while maintaining eligibility for essential Medicaid benefits.
These trusts have gained increasing prominence among New Yorkers seeking to secure their financial legacy. This blog post aims to underscore the fundamental aspects of MAPT to help those contemplating their financial future or that of their loved ones.
What is a MAPT?
While Medicaid helps individuals pay for long-term health care needs, qualifying for the program can be challenging. To be eligible, you must fall under specific income and asset thresholds. In New York, you qualify for benefits if you meet the following criteria:
- Your earnings should be less than $1,732 per month.
- Your assets should be no more than $30,182.
- You must need a nursing home level of care.
If your income and assets exceed the limit, you can use a MAPT to be eligible. Putting assets in the trust allows you to meet the asset limit of Medicaid.
Moreover, it protects them for your beneficiaries because the assets are exempt from Medicaid Estate Recovery. Generally, the state reimburses the cost of long-term care from a deceased’s estate. However, if your assets are in a MAPT, the state may not collect them.
Protecting your financial legacy
Medicaid asset protection trusts stand as a powerful tool in the arsenal of financial planning. They support asset preservation and healthcare security efforts. By establishing these trusts, individuals can potentially safeguard their hard-earned assets while maintaining eligibility for crucial Medicaid benefits.
