Medicaid Trust

A Medicaid asset protection trust—also known as a Medicaid trust or a MAPT—is a type of irrevocable trust that might be used in estate planning if a client or their spouse believes they will need long-term care at some point in the future. These trusts may be used as part of a strategy to qualify for Medicaid long-term care benefits, either alone or to supplement long-term care insurance  if their insurance coverage is not sufficient. 

By law, people must fall below a certain wealth threshold to qualify for Medicaid long-term care assistance. This means that, if a person who exceeds that level of wealth needs long-term care, they do not qualify for Medicaid and must pay for care out of their income or savings. The purpose of a Medicaid trust is to allow a client to avoid this situation. 

Learn more about Medicaid trusts and who might need one here.