What is a MAPT

A MAPT is a type of irrevocable trust that is created with the goal of transferring assets to qualify for Medicaid. If the planning is done far enough in advance, the assets in the MAPT do not count against Medicaid qualification. 

There are, however, drawbacks. Because it is an irrevocable trust there is a lack of control over the assets so it is best to really consider the pros and cons before making such a large decision. 

Benefits of a MAPT

1. You Can Still Benefit From the Assets of a MAPT

While a MAPT is still a irrevocable trust, there are still ways to benefit from the assets that you put in an irrevocable trust. 

When you create a MAPT, you select a trustee that will manage the trust, but if you have something in the trust, such as a house, you can still live in the house. 

2. Your Assets Are Safe From Medicaid and Other Long-Term Care Creditors

Once the assets are in the trust, they cannot be taken by Medicaid or other long-term creditors. This move also could protect assets from liens that the government may put on your property. 
 

3. You Can Choose Your Beneficiaries

A MAPT can also function as a large part of your estate plan. Since an irrevocable trust has the option for you to choose who gets the assets in the trust, it can be used as a good way to get around probate court. 
 

4. Assets Are Protected From Your Beneficiaries’ Creditors

Since beneficiaries don’t have access to the trust funds, they aren’t in possession of them. This means that they can’t be sued or in a divorce that takes away these assets. 
 

Drawbacks of MAPTS

1. Timing Is Everything

If you’re using a MAPT to apply for Medicaid then you must do it 5 years before you expect to need Medicaid for the trust to be used to its full effect. 
 

2. Income From A MAPT Is Countable by Medicaid

If the income that the trust makes is payable towards you then it could still be counted as income. Depending on how much income this is it could disqualify you from Medicaid. 
 

3. Giving UP Control Is Non-Negotiable

If you retain control of the trust then Medicaid will see this as trying to illegally qualify and you won’t qualify. 

Also, if you create the trust and don’t move your assets into the trust then there won’t be the protection there. 
 

4. Setting Up a MAPT Is Costly

Setting up the trust will take many hours to transfer all of the accounts and deeds. The legal council required can also cost several thousand dollars. In the end it is worth it to get the qualified help necessary. 
 

5. Potential Effects on Care

Medicaid does not cover all facilities, and this plan is good at getting someone qualified for Medicaid but not very good at getting someone into a facility if their intent isn’t to apply for Medicaid. 

However, many nursing homes and other facilities do accept Medicaid so in most places you will be able to get the care you need.