Medicaid Asset Protection Trust Form
An irrevocable medicaid trust may be used to help protect assets from liquidation when the need for an extended nursing home stay arises.
Medicaid asset protection trust form. Below is a list of the 5 w s what who when where why and the how concerning the mapt. Of form ss 4 which may be processed over the web at www irs gov through the mail or by fax. It must be properly worded and have an a trustee which can be your children other relative or an independent third party.
When this strategy works a loved one s admission to a long term care facility doesn t require a substantial spend down of investments meaning wealth can be preserved and transferred to the next generation. No assets other than such income exists and no other assets will be transferred to this trust. If you would like to discuss the benefits of mapts or discuss estate and long term care planning in general please do not wait to call the law firm of goldfarb abrandt salzman llp in new york at 212 387 8400.
It consists of an irrevocable trust usually set up by a parent of parents sixty five and older. The mapt is a type of an irrevocable trust commonly set up by individuals approaching the golden years. The income of a simple trust is taxed to the beneficiary.
A medicaid trust sometimes erroneously called a medicare trust is an irrevocable trust. Medicaid asset protection trust irrevocable income only trust amy s. To properly form a medicaid trust your attorney will need to make sure that the document is drafted correctly and funded so that the assets are transferred to the trust.
The total asset protection or dollar for dollar protection from medicaid resource spenddown requirements available under the medicaid. Extended coverage 4 4 100 plan are examples of the notices that will be sent to and trusts since resources are exempt from consideration in. An irrevocable medicaid trust that requires distribution of all income to or for the benefit of the beneficiary each year is considered a simple trust for purposes of the federal income tax.
But no irrevocable arrangement should be entered. O connor mcnamee lochner titus williams p c. If you would like to find out more about new york medicaid trusts you can call albert goodwin esq.
Creating a medicaid trust is a much less expensive option. By michael ettinger attorney at law the medicaid asset protection trust mapt is a technique commonly used by elder law attorneys. One such tool is a medicaid asset protection trust mapt.
Management and disposition of trust estate 2 1 it is grantor s primary concern in drafting this trust is to care for the beneficiary throughout the remainder of her life and to qualify for medicaid benefits.