Planning For A Secure Future

Protecting your assets with a Medicaid trust

On Behalf of | Sep 23, 2022 | Estate Planning

If you or your spouse may end up needing long-term care in California and you’ve never heard of a Medicaid asset protection trust (MAPT), it may be time to learn. This trust type may help you keep your assets secure without sacrificing the quality of care for the ones you care about the most.

What is the benefit of a MAPT?

When you transfer your assets into an MAPT, you can preserve your savings. You’ll be able to use this trust type as long as you qualify for Medicaid, which is essential for many people to cover the steep costs of long-term care.

Part of what makes these types of trusts an estate planner’s best friend is right in their design. Medicaid asset protection trusts patch up your coverage gaps, filling in whatever you need.

Whether long-term care means house calls, nursing home or one of the many forms of assisted care facilities, the costs tend to add up quickly. Unfortunately, this also means that your assets can soon run dry. And if your spouse has unique needs and will need to be cared for once you’ve passed away, you’ll want to ensure that your care plan is comprehensive and realistic should you pass away before them.

Make sure you’re eligible for Medicaid first

There are many things that people 65 and up rely on Medicare for. Unfortunately, the list of costs that the well-known government insurance program covers does not include long-term care.

While it is possible to have long-term care paid for by Medicaid, there are some hoops to jump through first. Determining your financial eligibility is the first thing to do if taking that route.

Consider that long-term care may one day be in the cards for you or your spouse. A MAPT may be a wise choice if you lack a policy covering long-term care insurance.