Medicaid Asset Protection Trust Lawyer in Chicago
Planning Ahead for Long-Term Care Costs
Helping families preserve assets while qualifying for care
The cost of nursing home or in-home care can quickly drain a lifetime of savings. At the Law Office of Johann Chau, we help Chicago-area families create Medicaid Asset Protection Trusts (MAPTs) as part of proactive long-term care planning. These trusts allow you to set aside assets while maintaining eligibility for Medicaid benefits, giving you financial security and peace of mind for the future.
Understanding Medicaid Asset Protection Trusts
A proactive approach to protecting what you’ve built
A MAPT is an irrevocable trust designed to shield certain assets from being counted when applying for Medicaid. By moving assets into the trust early, families can plan ahead and protect property, savings, and investments from being consumed by long-term care costs.
Key facts about MAPTs in Illinois:
- Timing matters:
Medicaid has a five-year “look-back” period. Assets transferred into a MAPT must be done at least five years before applying for Medicaid to avoid penalties.
- Commonly protected assets:
Primary residences, savings accounts, and other property can often be placed in a MAPT.
- Control and access:
Assets in a MAPT are no longer legally owned by you, but you can still designate how they are managed and who ultimately receives them.
- Integration with estate planning:
MAPTs work best as part of a larger plan, coordinating with wills, powers of attorney, and other trusts.
- Local considerations:
In Chicago and Cook County, rising long-term care costs make proactive planning critical to preserving family homes and assets.
Frequently Asked Questions About Medicaid Asset Protection Trusts
Helping Chicago families plan for long-term care
How does a Medicaid Asset Protection Trust work?
A MAPT allows you to transfer assets into an irrevocable trust so they are no longer counted as part of your personal resources for Medicaid eligibility. After the five-year look-back period, those assets are protected from being spent on nursing home or in-home care costs. This allows families in Chicago to preserve homes, savings, and inheritances while still qualifying for essential care.
When should I set up a MAPT?
The best time to create a MAPT is before you need long-term care. Because of the five-year look-back period in Illinois, planning early is critical. Many of our clients in Chicago and the suburbs begin the process in their late 50s or early 60s as part of their overall estate planning to ensure protection well in advance.
Can I still live in my home if it’s in a MAPT?
Yes, you can typically continue to live in your home even after transferring it to a MAPT. However, you will no longer own it personally; the trust will. This arrangement allows you to preserve the property for your heirs while still meeting Medicaid eligibility requirements when the time comes for long-term care.
What assets can go into a MAPT?
Common assets include your primary residence, secondary property, savings, and certain investments. Retirement accounts are usually handled differently and require separate planning. We help Chicago families evaluate which assets are best suited for protection under Illinois Medicaid rules.
Is a MAPT right for everyone?
MAPTs are most beneficial for individuals who want to plan ahead to preserve significant assets, such as a family home or savings, while preparing for the possibility of long-term care. They may not be appropriate for those who need immediate nursing home care or do not have assets to protect. We work with each family to determine whether this planning tool fits their needs and goals.