What is a Medicaid Asset Protection Trust (MAPT)?

As the cost of long-term care continues to rise, many individuals are concerned about how to protect their life savings while still qualifying for Medicaid. One of the most effective ways to do this is by setting up a Medicaid Asset Protection Trust (MAPT)—a legal tool that serves two essential purposes: protecting your assets during your lifetime and preserving them for your loved ones after your death.

How It Works

A Medicaid Asset Protection Trust is an irrevocable trust, meaning once it's created, you cannot control the assets inside it. This loss of control is intentional: since you no longer own or manage the assets, Medicaid does not count them when determining your eligibility. As of 2025, a single individual applying for Medicaid in New York must have no more than $32,296 in assets and an income limit of $1,800 per month to qualify. However, with proper planning using a MAPT, even those with greater resources may still qualify.

Most MAPTs are structured to provide income to the individual during their lifetime—for example, through interest or dividends from investments—while keeping the trust's principal protected. After death, that principal passes directly to the person's heirs.

Timing Matters

One important caveat: Medicaid reviews transfers made within five years of applying for long-term care benefits. Transfers made within that window can result in penalties or delays in coverage. That's why it's crucial to plan early, ideally before a medical crisis arises.

What Can You Transfer?

A wide range of assets can go into a MAPT, including your home, savings, checking accounts, and investment accounts. Once transferred, these assets are protected from being counted by Medicaid. However, some assets—like retirement accounts (IRAs and 401(k)s)—generally should not be transferred. In New York, these accounts are often already protected if you're taking required withdrawals, so careful planning is key.

Why Consider a Medicaid Asset Protection Trust?

A MAPT can help you qualify for Medicaid without the need to spend down your entire life savings on long-term care. By placing your assets—such as your home and financial accounts—into the trust, you can protect them from being counted for Medicaid eligibility and from being taken to repay care costs after your death. Assets in the trust can go directly to your loved ones, bypassing probate, which saves time, reduces legal fees, and keeps your affairs private. You must give up financial control and ownership of assets that you place into a MAPT, meaning that you no longer own them and you must do so at least five years in advance to escape the penalty period. That said, you may retain a limited power of appointment to control how MAPT assets are ultimately distributed to MAPT beneficiaries and you also preserve the step up in basis of the MAPT asset, two valuable benefits.

At its core, a MAPT helps preserve the wealth you've built over a lifetime so it stays in your family—not lost to long-term care expenses. With thoughtful planning and guidance from an experienced attorney, you can protect your assets, ensure your care, and gain peace of mind about the future.