Written by Kevin Urbatsch, JD, and Evelyn Wynn, JD

Divorce is always complex, but when it involves a spouse or child with disabilities who receives means-tested public benefits, the stakes become even higher. Property settlements, spousal support, and child support can inadvertently disqualify beneficiaries from critical programs such as Supplemental Security Income (SSI) and Medicaid.

Written by Zach Bloxham, J.D

Medicaid pays for millions of Americans to receive long-term care and support. While many know that a Medicaid applicant must meet strict means-tested financial eligibility requirements to secure benefits, many more are unaware that these benefits are often granted with strings attached in the form of federally authorized liens.

The Medicaid Asset Protection Trust (MAPT) is an irrevocable trust used for Medicaid planning or asset protection purposes. After assets are funded into the trust and the look-back period has expired, the assets in the trust are non-countable for long-term care Medicaid eligibility. The MAPT has several aspects that result in tax advantages, such as being a grantor trust and having trust income taxed according to the Grantor’s income tax brackets instead of trust taxation rates. Other tax advantages that the MAPT can be designed with stem from retaining a limited power of appointment (LPOA). Let’s take a deeper dive into the LPOA.