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.

The meaning of access to a financial account has recently been litigated in New Jersey. In a non-binding decision, the Superior Court of New Jersey disregarded the Medicaid applicant’s argument that she was physically and cognitively unable to access a joint account – ultimately leading to the inclusion of the resources against her for eligibility determination purposes.

Medicaid Basics

Medicaid is a program that makes medical care payments on behalf of the needy. When applying for long-term care benefits, neediness depends upon the applicant’s income and resources – the ability to contribute to the cost of their own care. Which resources are countable vary amongst states.