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How to Safeguard Your Home with a Medicaid Asset Protection Trust

house being protected
Protect your home with a trust

Have you safeguarded one of your biggest investments?

Transferring your house to a Medicaid Asset Protection Trust (MAPT) can be a strategic financial decision for individuals who want to protect their assets while qualifying for Medicaid benefits. Here are some good reasons why people consider transferring their home to a Medicaid Asset Protection Trust:

1.     Asset Protection. Placing your house in a Medicaid Asset Protection Trust can shield it from being counted as a personal asset for Medicaid eligibility purposes. It can also protect it from other types of liability. This protection can help ensure that your home is preserved for you and your heirs and beneficiaries while still allowing you to qualify for benefits when needed.

2.     Control and Flexibility. With a Medicaid Asset Protection Trust, you can retain control and the use of your home during your lifetime. You can also sell your home if you wish and the proceeds or your new house will continue to have protection. You can specify terms for how the property is managed and distributed to beneficiaries after your passing, providing flexibility in estate planning while still protecting your assets.

3.     Protection From Creditors. Assets placed in an irrevocable trust, such as a Medicaid Asset Protection Trust, generally become protected from creditors. This protection can be valuable in safeguarding your home from potential creditors or legal claims.

4.     Medicaid Eligibility. Medicaid has strict asset and income eligibility requirements for long-term care coverage. Transferring your home to a MAPT can help you meet these requirements by reducing your countable assets. This can be especially important if you anticipate needing Medicaid to help cover long-term care costs in the future.

5.     Avoiding Medicaid Estate Recovery. In some cases, Medicaid may seek reimbursement for the costs of long-term care services provided to an individual. By transferring your house to a MAPT, you may be able to minimize or avoid Medicaid estate recovery, thus preserving the vale of your estate for your beneficiaries.

6.     Tax Benefits. While Medicaid Asset Protection trusts are primarily designed for Medicaid eligibility and asset protection purposes, they may also offer certain tax benefits depending upon your individual circumstances. Tax benefits can include retaining senior and veteran tax benefits as well as eligibility for the step up in basis when you pass away.

Contact us for more information.

Protecting Your Home MAPT
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