Older Adults in Clearwater: When To Consider a Medicaid Asset Protection Trust?

If you are an older adult in Clearwater, the potential need for long-term care is worth considering. Unfortunately, the high costs of nursing homes, assisted living, visiting nurses, and other support services could wipe out what you worked your entire life to build.

Medicaid can help cover your care, provided you meet strict asset limits. A Medicaid Asset Protection Trust can help you qualify. Our Clearwater elder law attorney explains what you need to know about this common estate planning tool and when it makes sense to use one.

How Creating a Medicaid Asset Protection Trust Can Help Older Adults in Pinellas County

A Medicaid Asset Protection Trust (MAPT) holds assets in a way that removes them from your countable resources for Medicaid eligibility purposes. Once transferred into a MAPT, they are no longer considered yours for Medicaid calculations, which can help you qualify for benefits.

Because a MAPT is irrevocable, you give up control over the assets it contains, but can still receive income from them, depending on the trust’s structure. Assets commonly placed into a Medicaid Asset Protection Trust include:

• A primary residence, which you can often transfer while retaining the right to live there.
• Investment accounts, savings, and other liquid assets above Medicaid’s eligibility threshold.
• Rental properties or other real estate holdings.
• Valuable personal property intended as an inheritance for children or grandchildren.

Florida Medicaid enforces a strict 60-month lookback period, meaning assets transferred into a MAPT must have been in place for at least 5 years. Start the planning process early.

Who Is a Good Candidate for a Medicaid Asset Protection Trust?

According to the state Health Care Association, the average cost of a private room in a Florida nursing home exceeds $100,000 per year. A Medicaid Asset Protection Trust can help cover your costs, but it isn’t right for everyone. Situations in which you are most likely to benefit include:

• You are healthy, in your 60s or 70s, and want to protect assets before care needs arise.
• Your estate exceeds Medicaid’s asset limits, and you want to preserve an inheritance for your family.
• You own a home you would like to pass on to your children without it being subject to Medicaid estate recovery.
• You have already reviewed other strategies, such as spend-down planning, and are looking for a longer-term solution.

Because a MAPT involves permanently transferring control of assets, get trusted legal guidance before making a decision.

Contact Our Experienced Clearwater Elder Law Attorney Today

A Medicaid Asset Protection Trust can help Clearwater older adults cover long-term care, but only when it is set up correctly and in advance. We help older adults throughout Pinellas County evaluate their options and build strategies that protect both their assets and their access to care.

Board-Certified in Elder Law and with over 45 years of experience, Attorney William Rambaum provides the trusted, knowledgeable guidance your family deserves. Contact us today to request a consultation with our experienced Clearwater elder law attorney.

Sources:

medicaid.gov/medicaid/eligibility-policy

fhca.org/media_center/long_term_health_care_facts