Medicaid Asset Protection & Long-Term Care Planning

70% of Seniors Will Need Some Type of Long Term Care

There is a good chance that you or your spouse will need long-term care services in the future. If you do, you’ll be glad you planned. The truth is, there are only three ways to pay for long-term nursing care:

Long-Term Care Insurance

Long-term care insurance is the best way to pay for long-term care. However, most people don’t have long-term care insurance or wait too long to get it.

You Pay Out-of-Pocket

In Texas, the average cost of a private room in a nursing home is $6,388/month. A semi-private room averages out at $5,019/month. At this rate, your life savings won’t last very long…

You Qualify for Medicaid

Medicaid will cover the cost of long-term nursing care – however, there are strict eligibility and income requirements that, essentially, require you to be destitute before you can qualify for Medicaid coverage.


70% of Seniors Need Long Term Care


Average Monthly Cost of a Private Room in a Nursing Home in Texas


78% of Seniors Receiving Nursing Home Care Need Services for More Than 100 Days

Long-Term Care Costs Are the Biggest Threat to Your Nest Egg

That’s right. Many people are more worried about drops and dips in the stock market than they are about any other threat to their financial security. But your retirement accounts, savings accounts, investments, CDs, and assets are all at risk if you don’t engage in long-term care planning with a qualified Medicaid planning attorney.

As of 2020, the average cost of a private room in a nursing home in Texas is $6,188/month. This cost has already gone up and is only expected to continue rising.

Most people know that Medicaid will cover the cost of long-term care…but, to qualify, you must meet strict asset and income requirements that, frankly, require you to become destitute before Medicaid will step in and cover your costs. Some people assume they can give away their assets to children and loved ones, but Medicaid works on a 5-year look-back period, so you will either be penalized or ineligible for coverage depending on what you’ve given away and when.

There are ways to protect the assets you’ve worked a lifetime to accrue. An experienced Medicaid planning attorney can help you create a Medicaid asset protection trust and implement other tools to ensure you can qualify for Medicaid when you need it, without losing your life savings to the cost of long-term care.

What is a Medicaid Asset Protect Trust?

A Medicaid Asset Protection Trust (MAPT) is a common strategy to meet Medicaid’s asset limits. Essentially, a MAPT helps reduce the amount of assets that Medicaid can count when determining whether an applicant is eligible for coverage. By moving assets into this special type of trust, you can preserve the assets you’ve worked a lifetime to accrue and protect the inheritances you would like to leave for your children and grandchildren.

Not all trusts will protect your assets from the cost of long-term care and ensure Medicaid eligibility. It’s important to work with a qualified Medicaid planning attorney to determine the right type of trust for your unique situation. This is not something you want to do alone. If a MAPT isn’t the right solution for you, an attorney will know what is, and be able to help you draft the documents you need to protect your assets.

The best time to start long-term care planning is now. If you or your spouse suddenly need long-term care services, it’s too late to create a MAPT. There are Medicaid crisis solutions that a Medicaid planning attorney can help you implement, but they will not protect your assets as much as you will probably want. The best approach is to plan well in advance of needing nursing home care.

The attorneys at Hailey-Petty Law can help you implement an effective long-term care planning strategy, and determine if a Medicaid Asset Protection Trust is the right solution for you. Complete the brief form below to start the conversation about your own planning needs!