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Imagine a future where you or a loved one needs long-term care, perhaps in a nursing home or with in-home assistance here in New Hyde Park. We see families every day in Nassau County grappling with this challenge. They have a will, they have worked hard their whole lives, and they assume everything is taken care of. Then they learn a sobering truth: the assets they built over decades, including their family home, are at risk.
The cost of long-term care in New York is high. It can deplete a lifetime of savings in just a few years. For many, Medicaid becomes the only viable option to cover these expenses. However, qualifying for Medicaid for long-term care is complex. It requires you to have very few assets in your name, which is where a simple will fails. A will only dictates what happens to your assets after you pass away. It offers no protection while you are still alive and needing expensive care.
This is why a living trust, specifically a Medicaid Asset Protection Trust (MAPT), is such a powerful tool. It allows you to take proactive steps today to secure your financial future. When you establish this trust, you move assets out of your name and into a separate legal entity.
The Critical Difference: Trusts and the Medicaid Look-Back Period
To understand how this trust works, you must first understand a core New York Medicaid rule: the look-back period. For those applying for nursing home care, New York Medicaid examines all financial transactions made within the 60 months (five years) immediately before the application date. If you transferred assets for less than fair market value during this period, Medicaid imposes a penalty. This penalty causes a period of ineligibility for benefits.
This rule prevents people from giving away their money right before they need care. A revocable living trust does not protect your assets from this look-back period. Since you still have control, Medicaid considers those assets to be yours.
An irrevocable trust like a MAPT is different. Once you transfer assets into it, they are no longer legally yours. You cannot take them back or change the terms easily; but this loss of control is exactly what makes the trust effective for asset protection.
How a Medicaid Asset Protection Trust Protects Your Home
For many families in our community, the family home is their most valuable asset. But your home is not automatically safe from long-term care costs. While your primary residence may be exempt while you are alive and a spouse lives there, the New York Department of Health can seek reimbursement from your estate after your death through estate recovery.
A MAPT protects the home by removing it from your “probate estate.” Because the trust owns the home, and not you personally, it is generally not subject to Medicaid estate recovery after you pass away. This ensures your legacy stays with your family.
Beyond the Home: Protecting Other Assets
A MAPT can shield more than just real estate. You can transfer a variety of other assets into a properly structured trust to prevent them from being counted for Medicaid eligibility. These assets can include:
- Bank accounts and cash
- Stocks, bonds, and mutual funds
- Vacation properties or other non-primary real estate
As of 2026, New York rules regarding retirement accounts have shifted. IRAs and 401(k)s in payout status are generally considered exempt resources and do not need to be placed in a trust. Our team helps you determine which assets to include to maximize protection without triggering tax issues.
Why Planning Now Is Your Best Strategy
The five-year look-back period is the most significant reason to plan early. Many people wait until a health crisis is imminent. They may be in a hospital in Queens or a rehab center near the Long Island Expressway when they learn about the look-back rule for the first time. At that point, it may be too late to protect assets fully.
Advanced planning gives you peace of mind. It ensures the assets you worked for will support your family’s future. It is a gift you give to yourself and the ones you love.
Serving Our Neighbors in New Hyde Park and Beyond
Since 2001, we have worked with New York families to provide comprehensive legal and financial planning. Our attorneys and financial advisors work together under one roof. We offer flat-fee pricing for our services, so you know the cost upfront without surprises.
Don’t let long-term care costs deplete your life savings. We can help you create a trust tailored to your unique situation. Contact us today to schedule a consultation.
Contact Us
To learn more about protecting your family and financial legacy, contact Davidov Law Group at (516) 294-8114 to schedule your consultation.
