Chambliss, Bahner & Stophel, P.C. has made available for download their article, “What Are Medicaid Asset Protection Trusts?,” published in JDSUPRA. The abstract is as follows:
Medicaid is a state- and federally funded health program for lower-income persons of all ages. For applicants who fall into certain categories, Medicaid imposes specific rules on how much income and resources they can have and still qualify for benefits.
Each state has different rules for how much an applicant may have in income and assets to qualify for Medicaid. To qualify for Medicaid, you must fall under your state’s corresponding limit, which can be as low as $2,000 for an individual and $3,000 for a married couple.
These resource limits can also vary depending on whether a person applies for institutional or nursing home care, community-based services, or regular Medicaid.
If your assets are above the resource limit that would allow you to qualify for Medicaid, you may be able to engage in planning that will allow you to qualify for Medicaid. This planning often involves establishing a Medicaid Asset Protection Trust (MAPT) or an equivalent planning device permitted under your state’s laws.
When a MAPT or similar trust is properly drafted and implemented, it can protect your assets from Medicaid while enabling you to qualify for this benefit.
Posted by Melissa Zheng, Associate Editor, Wealth Strategies Journal.