Medicaid Protection Trust And When To Use One

Posted by Janssen Estate Probate and Elder LawDec 13, 20220 Comments

medicaid protection trust and when to use one

Janssen Estate Probate & Elder Law are here to provide expert guidance if you are contemplating about 'medicaid protection trust and when to use one' For 35 years, we have served the Kansas City Metropolitan Area with excellence. We believe that informed individuals can make more effective decisions.

Are you planning for Medicaid eligibility and need asset protection? A Medicaid Asset Protection Trust could be an ideal way to do just that. In this article, we explain what a MAPT (Medicaid Asset Protection Trust) is, its advantages when funding should occur, and why hiring an attorney is key - in particular why our firm should be your go-to solution when creating or administering your MAPT.


What Is A Medicaid Asset Protection Trust (MAPT)?

A Medicaid Asset Protection Trust is a legal instrument designed to assist individuals in protecting their assets while still qualifying for Medicaid to cover long-term healthcare needs. By protecting assets through this mechanism, savings from nursing home costs or in-home care costs won't be compromised as quickly.


How Do Medicaid Asset Protection Trusts Work?

Transferring assets into a Medicaid Trust means essentially renouncing ownership over them, such as your home, investments, and bank account. They will instead be held in trust to benefit your heirs and beneficiaries. According to Medicaid rules, you no longer own these assets, this allows you to retain Medicaid eligibility.


How Can A Medicaid Trust Protect My Assets?

When it comes to asset protection trusts for Medicaid beneficiaries, their true worth truly shines through.

  • Protects Your Home: Include your primary residence in a trust and still qualify for Medicaid long-term care assistance, while still protecting it.
  • Savings Will Remain Intact: By transferring all your assets into a trust, you ensure they will not be used to pay for expensive medical services.
  • Protect Your Legacy: MAPTs provide an easy and efficient way for transferring assets to beneficiaries following your death, ensuring they reap the benefits of all of your hard work.

When To Fund A Medicaid Asset Protection Trust?

As each individual's circumstances vary, there is no single solution that fits everyone. Here are a few essential points.

  • Plan Early: It is strongly advisable to establish a Medicaid trust well in advance of anticipated healthcare needs since Medicaid has a "look-back" period that could result in penalties if assets are transferred prior to applying for Medicaid.
  • Health Evaluation: You should conduct a health evaluation of the individual with whom you intend to establish trust, as soon as there is any suspicion that they require long-term healthcare services.
  • Estate Size: Your estate size will determine when and if a trust should be created. If your assets exceed some threshold amount, it would be prudent to begin planning for Medicaid early - particularly if there is substantial capital involved.
  • Consult an Attorney: Working with an experienced attorney will allow for personalized advice to be tailored specifically to your unique circumstances when setting up a trust.


Why Hiring An Attorney Is Beneficial:

Navigating the legal complexities associated with a Medicaid Asset Protection Trust can be complex and time-consuming, an attorney is essential in such circumstances.

  • Legal Expertise: Attorneys with experience in elder law and estate planning understand the intricacies of Medicaid regulations and can ensure your trust is legally sound and set up correctly.
  • Customization: Everyone's financial circumstances differ, which is why a lawyer can tailor a trust to fit you and maximize its benefits.
  • Peace of Mind: With an attorney on your side, you can find peace in knowing that your assets and Medicaid eligibility will be safe from irreparable harm.


When Should You Hire An Attorney?

An attorney should always be considered when creating a Medicaid Asset Protection Trust since early consultation increases options and flexibility. Here are some instances when their services might prove particularly helpful:

  • Regulations Can Alter: Medicaid regulations and rules may change over time. An attorney can keep you up-to-date with these developments and adapt your trust according to any alterations that arise.
  • Crisis Planning: Consult an attorney if you or someone close to you is at risk of needing long-term care services in the near future. They can offer solutions and offer guidance.
  • Review an Existing Trust: Once your trust is in place, it's wise to have it reviewed periodically by an attorney in order to make sure it still reflects your goals and is fully effective.


What Criteria Must I Follow To Choose An Attorney?

Your Medicaid Asset Protection Trust's success depends on selecting an attorney with whom to work. When searching for legal guidance, keep these factors in mind:

  • Elder Law Specialization: When searching for attorneys specializing in estate planning and elder law, looking out for ones with experience in these areas is crucial to successfully navigating Medicaid's complex landscape.
  • Experience: Attorneys who have extensive knowledge in managing Medicaid trusts will have a deeper understanding of all the nuances involved.
  • Client Testimonials: Reading testimonials and reviews from past clients of an attorney is an invaluable way to gain insight into his or her professionalism and competence.
  • Clear Communication: Effective communication is of utmost importance in any legal situation, so your lawyer should be able to explain everything in plain language and keep you up-to-date at every stage.
  • Fees and Costs: Discuss fees and costs upfront. An attorney who provides a clear explanation of their pricing structure could be an ideal candidate.


Why Choose Janssen Estate Probate & Elder Law

Now that you understand the significance of a Medicaid asset protection trust and why hiring the appropriate lawyer is essential, let us demonstrate why Janssen Estate Probate & Elder Law would be an ideal fit to guide you through this process.

  • Expertise: Our attorneys specialize in elder law and estate planning. We are perfectly equipped to take care of your Medicaid trust needs.
  • Customized Solutions: We understand that no two situations are identical, which is why we tailor trust solutions specifically to you and your requirements.
  • Client-Centric: At our firm, communication is of utmost importance - you'll know exactly where you stand in terms of trust and what to expect.
  • Proven Track Record: Our firm has an established track record of helping families and individuals protect their assets while still qualifying for Medicaid benefits.
  • Affordable Fees: Our services are cost-effective. We adhere to fair and transparent pricing.


Suggestions For Action

Consider taking these steps when setting up a Medicaid Asset Protect Trust:

  • Contact Our Firm: Get in touch with our firm and arrange a meeting with one of our seasoned attorneys.
  • Assess: Speak to your attorney about your current financial situation, goals, and timeline. This will enable them to recommend the most efficient path forward.
  • Establish a Trust: For assistance in setting up the perfect trust, seek legal advice.
  • Regular Review: Speak to your attorney regularly regarding your trust to stay abreast of changes in law and circumstances that might impact its execution.

Rest easy knowing your assets are safeguarded and are well-prepared for long-term needs. An asset protection trust can be an effective means of safeguarding while qualifying for Medicaid benefits. Contact us today at 913-322-6300 or send us an email on our Contact Page.