Medicaid is a needs-based government assistance program that provides health coverage to low-income adults, children, pregnant women, adults over 65, and those with disabilities. In Georgia, to qualify as needs-based, your income must be below $2,382 a month per individual who is filing (a married couple where both are filing would be $4,764). Last week we discussed what happens if your income exceeds the allowed limit, but what can you do if your assets disqualify you? The answer may be a Medicaid Asset Protection Trust (MAPT).
A Medicaid Asset Protection Trust is a kind of irrevocable trust designed to hold assets so that they will no longer be counted when you apply for Medicaid. Like a QIT, there are rules for how these trusts can be set up and what happens with the assets.
- There must be a Trustee other than you (a child or grandchild for example)
- While you can continue to live in your home, any assets you put into your MAPT are no longer considered yours. The beneficiaries could be your children or grandchildren.
- The Trust cannot be changed
- The Trust will need to be in existence 5 years before you apply for Medicaid as it will be included in the look back period.
Unlike a QIT, the assets in a MAPT do not get paid back to the government but rather pass on to your beneficiaries. While many assets can be placed into a MAPT, there are assets that should stay outside of this kind of trust (like IRAs). Creating a MAPT and/or a QIT can be a great Medicaid planning tool, but finding the right balance of income to assets, and then determining which income and assets should be put into these trust(s) can be complicated.
Trusts used to qualify for Medicaid are a complex area of law and an attorney experienced in elder and/or trust law should be consulted. For more information about Medicaid and Estate Planning, see our Medicaid blog. At Grissom Law, we look at all aspects of your life from lifestyle goals to financial needs to determine what plan will work best for you and your family. Call us at 678.781.9230 to schedule an appointment to discuss your Estate Plan and whether a Medicaid Asset Protection Trust is right for you.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site, you understand that there is no attorney-client relationship between you and Grissom Law, LLC.