Medicaid Asset Protection Trusts (MAPTs)
Medicaid Asset Protection Trusts (MAPTs) are an advanced estate-planning tool used by some individuals and couples as part of long-term care planning. When implemented appropriately and with sufficient advance planning, a MAPT can be one component of a broader strategy to prepare for potential Medicaid eligibility while preserving assets for family and loved ones.
MAPTs are not appropriate for every situation. They involve complex legal, tax, and Medicaid considerations and require careful, individualized analysis. At Salish Elder Law, we take a thoughtful, measured approach to MAPT planning and focus on helping clients understand whether this strategy aligns with their goals and circumstances.
What Is a Medicaid Asset Protection Trust?
A MAPT is a type of irrevocable trust designed to hold certain assets outside of an individual’s personal ownership for Medicaid eligibility purposes. Assets transferred to the trust are no longer owned by the individual, which can affect how those assets are treated under Medicaid rules after applicable lookback periods.
Because MAPTs are irrevocable and subject to strict regulations, they must be carefully structured and properly funded to be effective.
When a MAPT May Be Considered
MAPTs are most often explored by individuals or couples who:
Are planning in advance of anticipated long-term care needs
Own assets they wish to preserve for children or other beneficiaries
Understand that MAPTs involve permanent legal and financial decisions
Want to explore planning options beyond last-minute or crisis-based strategies
Timing is critical. Medicaid rules include lookback periods and transfer penalties, making proactive planning essential.
MAPTs and Other Planning Options for Married Couples
For married couples, Medicaid planning often involves additional strategies that are not available to single individuals. Certain transfers between spouses are permitted under Medicaid rules and do not trigger the five-year lookback period. As a result, some married couples may be able to engage in planning that protects assets for the community spouse without the use of a Medicaid Asset Protection Trust. By contrast, transfers to a Medicaid Asset Protection Trust are subject to the five-year lookback period, regardless of marital status. For this reason, MAPTs are typically used as a long-term, advance planning tool, rather than a short-term or crisis-based solution.
What MAPT Planning Involves
MAPT planning is not a single document or quick transaction. It typically involves:
Reviewing your overall financial picture and long-term goals
Evaluating how a MAPT compares to other available planning strategies
Designing and drafting a trust tailored to your circumstances
Coordinating with financial and tax professionals as appropriate
Advising on funding the trust and follow-through steps
Our firm provides Medicaid planning and trust drafting services. We do not prepare or file Medicaid applications or represent clients in the Medicaid application process. We work with clients to plan ahead and structure assets appropriately. If and when a Medicaid application becomes necessary, clients may work with a separate Medicaid application specialist or agency.
A Thoughtful, Individualized Approach
At Salish Elder Law, we believe Medicaid planning should be approached carefully and ethically. MAPTs can be effective in the right circumstances, but they are not a one-size-fits-all solution. Our role is to provide clear guidance, explain options and alternatives, and help clients make informed decisions about long-term planning.
If you are considering a Medicaid Asset Protection Trust, we invite you to schedule a consultation to discuss whether this strategy may be appropriate for you.
