1. Medicaid Asset Protection Trusts [“MAPTs”]
Daniel Timins, Esq., CFP®
Law Offices of Daniel Timins
477 Madison Avenue, Suite 240
New York, NY 10022
(212)

2. The Object: Get on Medicaid while Maintaining Family Assets
Barriers:
Asset Limit: $13,800 (minus retirement plans)
Income Limit: $767 / mo. (minus $ going to SNTs)
Transfer Look Backs:
Home Care = 1 month
Institutional = 5 years
DSS now scrutinizing trusts and Medicaid recipients vigorously
Outsourcing legal work to law firms
Denying many Income Only Trusts

3. MAPTs to the Rescue
What is a “Medicaid Asset Protection Trust”?
An irrevocable trust (a form of an Income Only Trust)
Primary residence and assets shielded from Medicaid
5 year look back still required
THE DIFFERENCE:
Most IOCs allow Medicaid recipient to take ALL income (thus fully Medicaid recoverable)
Income from MAPT can go to parent OR child
But if income goes to a parent on Medicaid then ONLY that month’s payment is recoverable by DSS
Though it is illegal, child could (hypothetically) “sneak’ his withdrawals back to parent

4. The MAPT Process Parent creates the Trust today
Child(ren) is Trustee today
Parent places home and majority of funds in Trust now (minus 5 years of living expenses)
5 year Look Back period begins
After 5 years MAPT pays home expenses, and Social Security pays for other expenses
(I.e. leave more money in MAPT)
Upon Medicaid application parent has less than $13,800 in assets AND house and MAPT assets are protected

5. “Do’s” With MAPTs Transfer house and most assets
Pay for home repairs and improvements
Pay real estate taxes & home owners insurance
Make gifts to other people from MAPT
A MAPT can be changed (“Decanted”) even though it is irrevocable

6. “Don’ts” With MAPTs Pay telephone or utility bills from MAPT
Use MAPT funds for personal expenses
Purchase a car with MAPT assets
Don’t take principal or capital gains
Don’t transfer IRAs to MAPT
Don’t let children return MAPT gifts to parent or to MAPT