Medicaid Asset Protection Trust Calculator
A Medicaid Asset Protection Trust (MAPT) shields assets from Medicaid spend-down requirements for long-term care. Assets transferred more than 5 years (60 months) before Medicaid application are protected. Earlier transfers trigger penalty periods proportional to the transfer amount divided by state's monthly nursing home rate.
How the 5-Year Look-Back Works
Medicaid looks back 60 months from application date. Asset transfers during that period trigger a penalty period: penalty months = transferred amount ÷ state's monthly nursing home rate. Example: $300K transferred 2 years before application, state rate $10K/mo → 30-month penalty (you must pay private for 30 months before Medicaid kicks in). California uses 30-month look-back currently (being phased out).
MAPT Mechanics
Irrevocable trust holds assets. Grantor (you) retains income rights but not principal control. Trustee (usually adult child or trusted family member) manages trust assets. After 5 years, trust assets are not counted for Medicaid eligibility. Critical: cannot retain right to revoke or change beneficiaries — that triggers full Medicaid attribution.
When MAPT Doesn't Work
Three scenarios: (1) Under age 65 — most state Medicaid programs use estate recovery from probate, not pre-eligibility transfers, so MAPT may not be needed. (2) Already in poor health with Medicaid likely within 5 years — penalty period defeats MAPT purpose. Use 'half-loaf' or single-premium immediate annuity instead. (3) Spouse already on Medicaid — different rules apply, MAPT may not help.
Source: Centers for Medicare & Medicaid Services (CMS) Medicaid Manual, 42 CFR §435.916, 2026 state nursing home rates. Last updated: May 2026.