A type of trust that can help shield assets from nursing home costs is known as a Medicaid Asset Protection Trust (MAPT) or a Medicaid Qualifying Trust (MQT).
This type of trust is designed to protect assets from being taken into account when determining Medicaid eligibility. The trust is set up so that the grantor, or the person creating the trust, cannot access the assets in the trust. This means that the assets in the trust are not considered available to the grantor for the purpose of paying for nursing home care.
To qualify for Medicaid, an individual must meet certain income and asset limits. If an individual’s assets exceed these limits, they will not be eligible for Medicaid coverage for nursing home care until they “spend down” their assets to within the limits. A MAPT or MQT allows the individual to transfer assets into the trust so that they are not counted towards the asset limit, allowing the individual to become eligible for Medicaid sooner.
It’s important to note that there are rules and restrictions regarding Medicaid Asset Protection Trust, and it’s important to consult with an attorney experienced in elder law and Medicaid planning before setting one up.
