Generally, the transfer of a home for less than fair market value will leave a Medicaid applicant with a hefty penalty. However, if the transfer is to a devoted son or daughter that moves in and provides such care that it delays the applicant’s entry into long-term care, then a legal strategy called the child caretaker exception may apply.

WealthCounsel’s Medicaid Asset Protection Trust (MAPT) is a strong tool to use for asset protection. Not only is the trust designed to protect assets from being counted for Medicaid eligibility, the trust can also be designed to accomplish asset protection for beneficiaries. Protecting loved ones is a common goal in elder law cases. Clients want to know that they are not only protecting themselves, but they are doing all they can to better the lives of their loved ones. Asset protection can be a desired product. To be able to protect beneficiaries from creditors, divorce, or judgments is a satisfying feeling. So how can one design the MAPT to achieve the best protection?

Medicaid is a federal program, run by individual states, that provides medical care to needy individuals. Many of our elders rely upon this program to access essential medical care for their long-term healthcare needs.

Accessing medical assistance through the Medicaid program is fairly simple at first glance. Generally, those with minimal resources will be afforded government assistance for their medical care needs. As the resources of the applicant increases, so too does the complexity of the application process. The program allows for the exclusion of certain assets and makes certain accommodations for the spouses of applicants, but there are many rules, details, and specifics that must be focused on for success.