Most families plan for the future with two big goals: caring for their loved ones and preserving what they’ve worked hard to build. For many Tennesseans, the threat of long-term care costs can easily reach thousands of dollars per month and it puts both of those goals at risk.

That’s where a Medicaid Asset Protection Trust (MAPT) can make all the difference.

A MAPT is a powerful legal tool that can help you qualify for Medicaid to pay for long-term care, while protecting your other assets. Here’s what you need to know about how it works.

What Is a Medicaid Asset Protection Trust?

With a MAPT, you transfer ownership of certain assets into an irrevocable trust, so Medicaid doesn’t count them as your resources when you apply for benefits.

Under Tennessee Medicaid (TennCare) rules, you must meet strict income and asset limits to qualify for long-term care benefits. Owning too much, such as a home, savings, or investments, can force you to spend down your assets before you get assistance.

By placing assets in a MAPT, you can protect them from being spent on long-term care costs and preserve them for your family.

How Does It Work?

Here’s a simple outline of how the process works:

1. You meet with an experienced elder law attorney to design and execute your MAPT.
2. You transfer ownership of selected assets — usually your home and sometimes other property — into the trust.
3. The trust becomes the legal owner of those assets, and you designate beneficiaries (such as your children) to inherit them later.
4. You can continue living in your home and using it as usual, but because it’s owned by the trust, it doesn’t count against you when applying for Medicaid.

It’s important to note that Tennessee’s Medicaid program has a look-back period of 5 years. This means that transfers to the trust must be made at least 5 years before applying for Medicaid to avoid penalties. That’s why it’s best to plan ahead rather than waiting until a health crisis occurs.

Why Use a MAPT?

A MAPT offers several benefits for families who want to protect their wealth and plan for the future:

• Preserve Your Home: Your home often carries both financial and sentimental value. A MAPT can shield it from being sold to pay for care.
• Protect Other Assets: Savings, investments, and other property can be transferred into the trust to protect them.
• Provide for Your Family: Ensures your spouse, children, or other heirs receive your assets.
• Peace of Mind: Knowing that you’ve taken steps to secure your family’s future can reduce stress and uncertainty.
• When Should You Start? Because of the 5-year look-back period, the earlier you create a MAPT, the more options you’ll have. If you wait until you need care, you may still have options, but they’re likely to be more limited.

Final Thoughts

• Planning for long-term care is one of the most important (and most overlooked) aspects of estate planning. A Medicaid Asset Protection Trust can help you safeguard your hard-earned wealth, protect your loved ones, and ensure you receive the care you need.
• If you’re ready to explore whether a MAPT is right for you, our team is here to help. Contact us today to schedule a consultation and take the first step toward securing your family’s future.