The Primary Purpose of a NY Medicaid Asset Protection Trust (MAPT)

The primary purpose of a New York Medicaid Asset Protection Trust (MAPT) is to safeguard assets from being counted as resources when determining Medicaid eligibility. Once the MAPT is established, assets are transferred into the trust, which includes specific language to ensure these assets are considered exempt for purposes of Medicaid eligibility after the applicable lookback period has expired. Also, after the grantor-Medicaid recipient's death, the assets are protected from Medicaid recovery, which is limited to a Medicaid recipient's probate estate or adminstration estate. This strategic planning tool allows individuals to protect their hard-earned assets, ensuring they are preserved for their loved ones rather than being depleted by long-term care costs.