As Americans live longer, they will need significantly more money to live adequately into their golden years. The costs of long-term care and nursing home stays in the United States are exorbitant. As these costs continues to rise, many families find that without proper planning, a single nursing home stay can even deplete a lifetime of savings. A Medicaid Asset Protection Trust (MAPT) offers a solution by sheltering certain assets from being counted toward Medicaid’s eligibility limits. By transferring your home, investments, or other assets into a properly structured MAPT, you can preserve those resources for your loved ones while still qualifying for Medicaid to cover nursing home or assisted living expenses. Continue reading to find out how you could potentially benefit from establishing a Medicaid Asset Protection Trust and always reach out to an Arkansas estate planning attorney to assist you.
How Can Medicaid and Medicare Affect Your Long-Term Care Cost in Arkansas?
Americans age 65 and older will typically qualify for Medicare, the federal health insurance program that covers hospital stays, doctor visits, and many medical treatments. However, Medicare does not cover long-term care, such a stay in a nursing home or in an assisted living facility. The good news is that Medicaid will cover long-term care for seniors, but it has stringent income and asset limits. As such, many Senior citizens in Arkansas cannot qualify for Medicaid.
Additionally, because Medicaid looks back at your financial transaction history and imposes strict eligibility thresholds, many Missouri seniors find themselves ineligible and end up paying thousands of dollars per month out-of-pocket. This can quickly deplete a lifetime of savings and place overwhelming stress on families. A Medicaid Asset Protection Trust (MAPT) offers a sensible solution.
How A Medicaid Asset Protection Trust Works
Through a Medicaid Asset Protection Trust, you can by transfer property, such as your home, investment accounts, or other assets into an irrevocable trust well before you may need care. Once you place assets into a MAPT, an irrevocable trust¸ they no longer belong to you, and you generally cannot revoke or change the terms of the trust. As these assets are no longer a part of your estate, they will not be counted as part of Medicaid’s assets calculations. You can still live in a property you placed in trust and receive any income the trust earns. Simply speaking, a Medicaid Asset Protection Trust is a great way to preserve your estate and qualifying for Medicaid to cover your long-term care expenses. However, these trusts must be carefully structured under Arkansas law and timed to comply with Medicaid’s rules, so it is absolutely essential to work with an experienced estate planning attorney.
What Assets Can You Place In A Medicaid Asset Protection Trust in Arkansas?
Most types of assets are eligible to place in a MAPT in Arkansas, including:
- Real Estate, including primary residence and vacation home properties
- Cash
- Vehicles
- Bank accounts
- Stocks, bonds, mutual funds, CDs
- Income from rental property or investments
- Life insurance policies
- Personal property, such as valuable collectibles, memorabilia, jewelry, gold, etc.
If you have any questions regarding what should be included in a trust, consult the Arkansas legal team at L. Jennings Law.
Contact L. Jennings Law to Help Set Up Your Medicaid Asset Protection Trust
A Medicaid Asset Protection Trust lets you transfer assets out of your name so they no longer count toward Medicaid’s eligibility limits, while still allowing you to receive any income those assets generate. However, setting up a MAPT trust up correctly requires partnering with an experienced Arkansas estate-planning attorney at L. Jennings Law. Our team can help you choose the right assets, meet all timing deadlines, and make sure your trust preserves your legacy and secures long-term care coverage. Contact us today to schedule a consultation and ensure your estate is prepared and protected for any potential long term care needs.