New York Medicaid Asset Protection Trusts

Today’s uncertain regulatory environment means that more and more people in Putnam County are becoming concerned about long-term care for themselves and loved ones. Medicaid is the federal program that covers the strong majority of people if they require nursing home care toward the end of their lives – but the program is means tested and requires jumping through several hoops, so to speak, to qualify. The right attorney can help you apply for Medicaid services while preserving your assets for your loved ones to enjoy.

Trusts Can Preserve Your Assets

In order to qualify for New York Medicaid, a person must have no more than around $33,000 in assets. Medicaid planning is the process of either selling your assets or planning your estate in such a way that assets do not count toward the means test – and one of the most common ways to do this is by creating a Medicaid Asset Protection Trust (MAPT).

A MAPT is what is known as an irrevocable trust. If a trust is irrevocable, it means that it cannot be changed or revoked once it is created – its contents can only be passed on to the trustee or trustees selected to receive them. What this does is take those assets out of your name, meaning they do not count toward your ‘means’ for purposes of applying for Medicaid. However, there are rules and regulations around creating an irrevocable trust and accessing it at a later date.

Be Aware Of The Look-Back Period

While a MAPT can solve many of your estate planning problems in terms of qualifying for Medicaid, it is important to keep in mind that Medicaid has what is known as a look-back period. The overall length of time varies from state to state – in New York, it is 60 months (5 years) – and during the period, any asset transfers you make, whether to a friend or family member or into a trust, will be scrutinized. If the transfer is deemed to be unacceptable, you will incur a penalty that is based on the amount of the transfer.

The best option is to begin estate planning now, to ensure that your assets can be transferred into the MAPT long before you begin to need it. It is understandable that many do not want to think of such heavy topics, but it is better for both you and your loved ones to have a plan in place, both in the event of needing long-term care and at the time of your eventual passing. The right attorney can help.

Call A Mahopac Medicaid Planning Attorney

If you are thinking about your estate plan in these turbulent times, a Mahopac Medicaid planning attorney from Meyer & Spencer, PC can help answer your questions and ensure your loved ones are cared for. Contact our office today to schedule a consultation.