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Some items to consider for a Medicaid Asset Protection Trust: You transfer assets to this type of trust and give up control and ownership. You select a trustee to manage the assets in the trust. You may benefit from the income generated from the assets in the trust or retain a right to live in a home even when these assets are transferred to the trust. The assets in the trust do not count against you for purposes of Medicaid eligibility after a period of 5 years. These assets in the trust then do not have to be used to pay for your care or have liens placed against them, as long as the 5-year period has passed. The trust acts like a Will as you name beneficiaries for the assets upon your passing and in the manner you choose. Your beneficiaries’ creditors do not have access to any assets during your life and you can structure how beneficiaries should receive their assets upon your passing. You may receive the full capital gains tax exclusion on sale of the primary residence. Upon your passing, the assets in the trust receive the step-up in basis. You need to create this trust in advance to avoid the Medicaid lookback period. If five years has not passed, you may be responsible for some or all of your long-term care. Income from the trust may exceed the income limit per the Medicaid standards and you would either partially pay toward your care or use a pooled income trust. This must all be discussed with your attorney to determine if this is right for you...