Irrevocable trusts can be utilized for Medicaid planning in New York to safeguard assets from being considered for Medicaid eligibility. Once assets are placed in an irrevocable trust, they cannot be reclaimed by the grantor. This strategy can help individuals qualify for Medicaid while preserving some assets for their beneficiaries. However, it is crucial to seek professional advice before establishing an irrevocable trust, as the rules and regulations can be complex and subject to frequent changes.
A Medicaid Asset Protection Trust (MAPT) is a specific type of irrevocable trust designed to shield your assets from being counted towards your Medicaid asset limit. By transferring your funds to a MAPT, you may be able to have your countable assets disregarded, thereby becoming eligible for Medicaid. Typically, a MAPT is established by an individual (grantor) who transfers ownership of certain assets to a trustee responsible for managing the assets for the benefit of the grantor and their beneficiaries.
Once established, a grantor cannot change or revoke the trust, making it a powerful tool for safeguarding assets from being utilized for long-term care expenses or other medical costs.
Consider the following advantages when contemplating a MAPT:
A MAPT can be a potent instrument for asset protection and ensuring Medicaid benefits in the event of long-term care needs. However, it is important to work with an experienced Medicaid planning attorney to ensure proper setup of the trust according to your specific needs and goals.
Creating a MAPT triggers a five-year look-back period for Medicaid eligibility. This means that any assets transferred to the trust within the past five years will still count towards the Medicaid asset limit. It is essential to plan ahead and consult with an experienced attorney to determine if a MAPT is the right strategy for you.
If you or a loved one are considering Medicaid planning in New York, it is crucial to consult with an experienced attorney who can guide you through the complexities of irrevocable trusts and other planning strategies.
Contact NY Elder Law Group to discuss your options and take the first step toward securing your financial future. Schedule a consultation now and gain the peace of mind you deserve.