A common question we get from attorneys that have never practiced elder law is "What is a Medicaid Asset Protection Trust (MAPT) and why should I used one?" ElderCounsel Chief Executive Offer Valerie Peterson breaks it down for you in this video.
A Medicaid Asset Protection Trust is really the cornerstone of an elder law practice. It's an irrevocable trust and it can be drafted a number of ways to take advantage of tax benefits. It can be drafted in a way where all income from trust assets are taxed to the grantor. You can also draft it to protect a step-up in basis at the death of the grantor for assets that are placed inside this trust.
It also provides numerous advantages over outright gifting which leads to tax advantages that are associated with this type of trust that you simply can't get by making a gift outright.
Finally, Medicaid Asset Protection Trust protects assets for the beneficiaries who ultimately receive those assets upon the grantor's death. This is like an enhanced type of estate planning but is geared toward our senior population and their loved ones.
The Medicaid Asset Protection Trust is one of many documents offered in ElderDocx. Download a preview today!