What Is a Medicaid Trust?
A Medicaid trust—more formally called a Medicaid Asset Protection Trust (MAPT)—is a specialized irrevocable trust designed to help individuals qualify for Medicaid while preserving certain assets for their heirs. The primary goal is to shelter assets from being counted in Medicaid’s financial eligibility test, so they are not depleted by long-term care costs.While Medicaid is a joint federal–state program, each state has its own rules about how these trusts are structured and implemented. However, the core principle is the same: you transfer ownership of certain assets to the trust so that, after a waiting period, they are no longer considered…
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