The Challenge
Sarah and Mike’s Challenge: Affording Nursing Care and Protecting Their Assets
The Johnsons came to us with a common worry: What if one of them needs nursing home care in the future? They’d heard stories of families losing their homes and life savings to long-term care costs.
They wanted to know how they could:
- Qualify for Nursing Home Medicaid benefits if needed
- Protect their home from Medicaid estate recovery
- Preserve their life savings for their children’s inheritance
Our Solution
We explained to Sarah and Mike how a Medicaid Asset Protection Trust (MAPT) could help them achieve their goals:
- Asset Protection: By transferring their home and other assets into the trust, these assets would no longer be countable for Medicaid eligibility purposes after a five-year lookback period.
- Medicaid Qualification: If either Sarah or Mike needs nursing home care after the five-year period, the assets in the trust wouldn’t prevent them from qualifying for Medicaid benefits.
- Avoid Estate Recovery: Since the home would no longer be in their names, it would be protected from Medicaid estate recovery after their passing.
- Preserve Inheritance: The trust allows them to name their children as beneficiaries, ensuring their legacy passes to the next generation.
Our Process
- We drafted a customized MAPT for the Johnsons.
- We helped them transfer their home and other selected assets into the trust.
- We ensured they understood the terms of the trust, including:
- They can continue living in their home
- They’ll receive any income generated by trust assets
- They can sell or refinance trust assets since they will be the initial trustees
The Outcome
Five years after setting up the MAPT, Sarah and Mike have peace of mind knowing:
- Their home is protected from potential Medicaid estate recovery
- They have a plan in place if either needs nursing home care
- They’ve preserved their life savings for their children’s inheritance
How We Can Help You
For every family there are unknown circumstances. We can give you an additional degree of confidence in your future. Let us show you how to secure your legacy though establishing a Medicaid Asset Protection Trust.
