We've given you a quick comparison of four types of asset protection trusts used in elder law, but we wanted to take it one step further and break down each type into more detail. The first trust we will cover is the most popular trust created in Elder Docx: the Medicaid Asset Protection Trust.

For elder law attorneys, the Medicaid Asset Protection Trust can be a complex asset protection trust to understand. While it has many benefits, there can also be some drawbacks, so it’s important to know when and why you might want to recommend this type of trust to your elder law clients.

While the Medicaid Asset Protection Trust is not for everyone, it can be an effective trust for protecting a family’s financial security in certain circumstances.

According to a report published by the U.S. Department of Health and Human Services’ Administration on Aging, nearly 17 percent of the population is comprised of Americans ages 65 and over. The number of older Americans drastically increased in just ten years, rising 36 percent from 39.6 million in 2009, to 54.1 million in 2019.

Proactive planning is designed to allow people to qualify for Medicaid without losing most, if not all their resources. The main strategy is to utilize special planning techniques to make appropriate transfers at least five years before applying for institutional level of care benefits.