Thanks to modern medicine and a wealth of easily accessible nutrients, Americans often live past the retirement age. While this means most Delaware residents can have long, active lives, it also increases the chance that you may need long-term care services later in life. As you get older, you may want to preserve as much money and property as you can so that it passes to family members. However, that may not be possible if you want to be eligible for Medicaid, which can pay for long-term care.

According to the American Council on Aging, Medicaid Asset Protection Trusts are often a valuable estate planning tool. This type of trust enables a person, otherwise ineligible for Medicaid, to qualify and receive the nursing home or at-home care they need. Although some property is exempt, such as a vehicle, home and wedding rings, you may still exceed the asset limit. In these instances, you must spend down or institute a planning strategy that includes a MAPT.

The trust not only helps you meet Medicaid’s asset limit, but it also keeps property safe from Medicaid estate recovery. The state cannot touch the MAPT contents. Advanced planning is a requirement for this type of trust so that it does not violate the 60-month look back period. It is useful if you will not need Medicaid for at least 2.5 years. Specific types of assets can go into MAPTs, including bonds, stocks, checking and savings accounts, CDs and mutual funds.

The rules for Medicaid Asset Protection Trusts change often. It is essential that you stay up-to-date on the current requirements so that you can avoid the spend down and Medicaid estate recovery. Visit our webpage for more information on this topic.