How do I protect my assets from Medicaid in NY?
Asked by: Nicholas Bartell | Last update: July 31, 2025Score: 4.5/5 (41 votes)
What assets are exempt from Medicaid in New York?
- • The home up to a value of about $1,100,000.
- • About $75,000 to $158,000 in resources.
- • One automobile• Prepaid funeral and burial for applicant and spouse.
- • Household furniture, personal effects, jewelry with sentimental value.
What are the disadvantages of a Medicaid asset protection trust?
Disadvantages of a Medicaid trust
Establishing a trust can be expensive, and some clients will not be in a financial position to do so. Additionally, there is a five year look-back period in which assets in a Medicaid trust would still count toward coverage eligibility.
How much does a Medicaid asset protection trust cost?
How Much Does it Cost to Create a Medicaid Asset Protection Trust? The cost of creating a Medicaid Asset Protection Trust varies significantly from a low of $2,000 to a high of $12,000. While the price might seem high, in reality, a MAPT ends up saving persons money in the long run.
How do I protect my assets from Medicaid look back?
There are really two ways to protect assets (both are subject to a 5 year look back period for Medicaid so it's best to move assets before an official diagnosis of dementia). First is an irrevocable trust. Second is a Medicaid compliant annuity.
How to Protect Against Medicaid Look Back Period & Preserve Assets
How do I protect my bank account from Medicaid?
One such option to protect assets is a Medicaid Trust. By placing some of your assets in an appropriate trust, you can protect them from Medicaid and have them not be counted when you are applying for benefits.
How often does Medicaid check your bank account?
Medicaid agencies can check your account balances for bank accounts at any financial institution you've used in the past five years. They will check when you submit an application and on an annual basis, but checks can occur at any time.
Can a trust be touched by Medicaid?
While revocable trusts offer flexibility as they can be changed or revoked by the trustor, they won't protect assets from Medicaid. Irrevocable trusts, like Medicaid asset protection trusts (MAPTs), on the other hand, remove assets from an owner's control, rendering them eligible to meet Medicaid requirements.
Are asset protection trusts a good idea?
Trusts also can be very useful for asset protection purposes if the creditors of the beneficiary are prevented from reaching the trust's assets. A trust can be an effective way to place assets outside the reach of creditors.
What is the Medicaid lookback period?
There are also two state exceptions when it comes to the Look-Back Period – California and New York. There is no Look-Back Period for HCBS Waivers in California, and it's 30 months (2.5 years) for Nursing Home Medicaid, although that will be phased out by July 2026, leaving California with no Look-Back Period.
How to protect your assets from Medicaid in NY?
A popular strategy to protect your resources and still become eligible for Medicaid long term care benefits is by establishing a Medicaid Asset Protection Trust (MAPT). When you transfer your assets in a MAPT, Medicaid will not count the money in the trust toward its resource limit.
What is the 5 year rule on trusts?
Once assets are placed in an irrevocable trust, you no longer have control over them, and they won't be included in your Medicaid eligibility determination after five years. It's important to plan well in advance, as the 5-year look-back rule still applies.
What is the drawback of Medicaid?
One of the most serious problems with understanding the Medicaid program is that it is not a single program, but rather an umbrella program that has several components serving vastly different populations that have in common the sole misfortune of having insufficient income to meet their health care needs.
How does Medicaid know you have assets?
Required documentation to be provided by the applicant might include checking, savings, money market, credit union, and certificates of deposit (CD) account statements, life insurance policies, deeds or appraisals for one's home and other real estate, copies of stocks and bonds, deeds to burial plots, and copies of pre ...
Does NY Medicaid have asset limits?
The medically needy asset limit is $31,175 for an individual and $42,312 for a couple. 2) Pooled Income Trusts – Persons who are disabled in NY and have income over Medicaid's income limit can become income-eligible by depositing their “excess” income into a Pooled Income Trust.
What happens if you win money while on Medicaid?
Winning the lottery generally doesn't require you to pay back Medicaid costs. However, it can affect your eligibility for Medicaid, as eligibility often depends on income levels, which vary by state. You might lose your benefits if your lottery winnings push your income above the Medicaid threshold.
What is the strongest asset protection?
An asset protection trust (APT) is a complex financial planning tool designed to protect your assets from creditors. APTs offer the strongest protection you can find from creditors, lawsuits, or judgments against your estate. These vehicles are structured as either "domestic" or "foreign" asset protection trusts.
How much does it cost to set up an asset protection trust?
Initial legal fees - To properly establish an asset protection trust, most attorneys will charge between $5,000-$10,000 on average. High asset trusts or complex situations may be $15,000+.
Does NY allow asset protection trusts?
Establishing a Domestic Asset Protection Trust
However, New York places more restrictions on DAPTs than many other states. If you establish an irrevocable trust, you cannot typically name yourself as a beneficiary—but you can still configure your DAPT to provide long-term protection for your family.
How to protect assets in Medicaid?
Irrevocable trusts are a commonly used tool for asset protection when planning for Medicaid. By transferring your assets into an irrevocable trust, you effectively remove them from your ownership, thereby protecting them from Medicaid's asset requirements.
Can nursing homes take money from a trust?
And so the trustee of a trust, whether it's revocable or irrevocable, can use trust funds to pay for nursing home care for a senior.
What are the disadvantages of asset protection trust?
Must be created in advance: In many cases, an APT must be established a significant amount of time before being used to apply for benefits, or before claims are filed against the creator. Irrevocable: Once the terms of an APT are set, it's extremely difficult to change them except under very limited circumstances.
How many cars can you own on Medicaid?
An applicant is allowed to own one car that's not included in your resource limit if it's used for transportation or by another person living in the house, such as a spouse. You also don't have to be the driver of the vehicle. It's important to know that the value of the vehicle doesn't matter.
What assets can you keep when you go on Medicare?
On January 1, 2024, the asset test to qualify for a Medicare Savings Program was eliminated. This means individuals can have any amount of assets and still qualify for a Medicare Savings Program. Assets are things that you own, such as bank accounts, cash, second homes and vehicles.