Did you know that even individuals with substantial estates living in New York or New Jersey may be eligible for government assistance, such as Medicaid, when they require long-term health care?

By executing a Medicaid Asset Protection Trust (“MAPT”) and a Qualified Income Trust (“QIT”), a New Jersey resident may protect one’s assets and income from being counted against Medicaid eligibility limits.

The catch, however, is that the asset protection does not begin until five years have passed from the date assets are transferred into the MAPT to the date one applies for government assistance, such as Medicaid.

The QIT may be executed closer to the date that one files for Medicaid eligibility, but one must be sure to transfer all their sources of income into the QIT so that they are not counted towards Medicaid income eligibility limits.
In New York, the same principles apply, but instead of executing a QIT, one must deposit one’s excess income (the amount above the Medicaid eligibility limit) into a Pooled Income Trust.

So, whether living in New York or New Jersey, advance estate planning is crucial to ensure that one’s long-term health care objectives are met.