Insight

How Can I Protect My Home with Minimal Impact on My Life?

How Can I Protect My Home with Minimal Impact on My Life?

Anthony J. Enea

Anthony J. Enea

October 26, 2022 12:19 PM

For more than three (3) decades I have alerted seniors of the need to be proactive in taking steps to protect their home from the cost of long-term care. Amazingly, and in spite of all that has been written about Elder Law, Medicaid eligibility and asset protection planning over the last three decades, there are still tens of thousands of at-risk seniors in New York who have not taken any steps to protect their life savings, and specifically, their home.

Of all the differing assets one owns, the home is perhaps the easiest to protect with minimal impact on one’s life and finances. For example, one’s home (single or multi-family primary residence, vacation home, condo and if the Co-op Board permits, a cooperative apartment) can be transferred to an Irrevocable Medicaid Asset Protection Trust (MAPT). When doing so the owners of the home creating the MAPT retain the right to the use and possession of the home (transferred to the MAPT) during their lifetime. The Trustee(s) (presumably their children or other loved ones) cannot sell or rent the home without their permission. The creators of the MAPT can retain the power to remove and replace the Trustee(s) and to change their mind as to whom will receive the trust assets upon their demise. The transfer of the property to the MAPT will create a five (5) year lookback (ineligibility period) for Medicaid nursing home and soon it is anticipated to create a thirty (30) month lookback for Medicaid homecare in New York (once COVID emergency is lifted).

If properly drafted, the MAPT can be structured so that the creators of the MAPT are deemed the owners of the home and trust assets, for income tax purposes. Thus, retaining the ability to utilize the personal residence exclusion for capital gains taxes ($250,000 if single, $500,000 if married), in the event the house is sold by the MAPT during the life of the MAPT creator(s). Additionally, the creator(s) retains any STAR, Senior Citizens, Veterans and other tax exemption they may be entitled to.

If the house is sold after it is transferred to the MAPT and before the creator(s) passes, the proceeds of sale can be used to purchase another home in the name of the MAPT. Thus, once the lookback period has expired the newly purchased home and any remaining proceeds of sale will be protected and not impact eligibility for Medicaid.

Thus, as stated above, transferring one’s home to a MAPT presents little or no inconvenience to the homeowners. They continue to maintain the home and pay all of the expense of the home as if they and not the MAPT owns it. The only bill that changes is the property and casualty insurance for the home, which needs to name the Trust as the primary insured.

In conclusion, using a MAPT to protect one’s home(s) from the cost of long-term care is minimally intrusive to one’s lifestyle and finances, while providing the eventual benefit that one’s equity in the home is sheltered.

Anthony J. Enea is a member of Enea, Scanlan and Sirignano, LLP of White Plains, New York. He focuses his practice on Wills, Trusts and Estates and Elder Law. Mr. Enea is the Past Chair of Elder Law and Special Needs Section of the New York State Bar Association (NYSBA), and is the past Chair of the 50+ Section of the NYSBA. Mr. Enea is a Past President and Founding member of the New York Chapter of the National Academy of Elder Law Attorneys (NAELA). Mr. Enea is the Immediate Past President of the Westchester County Bar Foundation and a Past President of the Westchester County Bar Association. Mr. Enea can be reached at (914) 948-1500 or at a.enea@esslawfirm.com.

Related Articles

The Benefits of Charitable Giving in New York Estate Planning


by Best Lawyers

In this article, Best Lawyers breaks down the advantages and disadvantages of factoring in charitable donations when estate planning in New York state.

Animated hand giving a gift with bow on top

The New PPE


by Jennifer Stavros

How to plan your pandemic preparedness estate—all from the safety of home.

Planning Your Digital Estate Plan

Protecting Your Legacy With Estate Planning


by Tripp Wiles

You're careful with your finances; do you still need asset protection?

Protecting Your Legacy With Estate Planning

Is It Time for You to Have the Long-Term Care Planning Talk With Your Parents?


by Anthony J. Enea

How should you talk to your parents about long-term care options? Estate planning can make for a difficult conversation, but wills and trusts are necessary documents for anyone growing older.

Estate Planning for Parents Guide

Most Americans Lack a Power of Attorney for Assets


by George M. Riter

Only 25 percent of American households have estate planning documents in place. A Power of Attorney for Assets will secure your financial affairs should you be unable to do so yourself.

Power of Attorney for Assets Documents

Ellen G. Makofsky, 2018 "Lawyer of the Year" for Elder Law


by Nicole Ortiz

Ellen G. Makofsky of Makofsky and Associates was named 2018 "Lawyer of the Year" in Long Island for Elder Law.

Ellen G. Makofsky LOTY

Anthony J. Enea, 2018 "Lawyer of the Year" for Elder Law


by Nicole Ortiz

Anthony J. Enea of Enea, Scanlan & Sirignano, LLP was named 2018 "Lawyer of the Year" in White Plains for Elder Law.

Anthony J. Enea LOTY

Protect Your Pets: Westchester Elder Law Attorney Anthony Enea Explains How to Provide for Pets in an Estate Plan


by Anthony J. Enea

Along with pet ownership comes the responsibility of ensuring your companion animal's care and well-being - even if that extends beyond your lifetime.

Elder Law - Pets Estate Plan

Trending Articles

2025 Best Lawyers Awards Announced: Honoring Outstanding Legal Professionals Across the U.S.


by Jennifer Verta

Introducing the 31st edition of The Best Lawyers in America and the fifth edition of Best Lawyers: Ones to Watch in America.

Digital map of the United States illuminated by numerous bright lights

Unveiling the 2025 Best Lawyers Awards Canada: Celebrating Legal Excellence


by Jennifer Verta

Presenting the 19th edition of The Best Lawyers in Canada and the 4th edition of Best Lawyers: Ones to Watch in Canada.

Digital map of Canadathis on illuminated by numerous bright lights

Legal Distinction on Display: 15th Edition of The Best Lawyers in France™


by Best Lawyers

The industry’s best lawyers and firms working in France are revealed in the newly released, comprehensive the 15th Edition of The Best Lawyers in France™.

French flag in front of country's outline

Presenting the 2025 Best Lawyers Editions in Chile, Colombia, Peru and Puerto Rico


by Jennifer Verta

Celebrating top legal professionals in South America and the Caribbean.

Flags of Puerto Rico, Chile, Colombia, and Peru, representing countries featured in the Best Lawyers

Announcing the 13th Edition of Best Lawyers Rankings in the United Kingdom


by Best Lawyers

Best Lawyers is proud to announce the newest edition of legal rankings in the United Kingdom, marking the 13th consecutive edition of awards in the country.

British flag in front of country's outline

Unveiling the 2025 Best Lawyers Editions in Brazil, Mexico, Portugal and South Africa


by Jennifer Verta

Best Lawyers celebrates the finest in law, reaffirming its commitment to the global legal community.

Flags of Brazil, Mexico, Portugal and South Africa, representing Best Lawyers countries

Prop 36 California 2024: California’s Path to Stricter Sentencing and Criminal Justice Reform


by Jennifer Verta

Explore how Prop 36 could shape California's sentencing laws and justice reform.

Illustrated Hands Breaking Chains Against a Bright Red Background

Announcing the 16th Edition of the Best Lawyers in Germany Rankings


by Best Lawyers

Best Lawyers announces the 16th edition of The Best Lawyers in Germany™, featuring a unique set of rankings that highlights Germany's top legal talent.

German flag in front of country's outline

Celebrating Excellence in Law: 11th Edition of Best Lawyers in Italy™


by Best Lawyers

Best Lawyers announces the 11th edition of The Best Lawyers in Italy™, which features an elite list of awards showcasing Italy's current legal talent.

Italian flag in front of country's outline

Tampa Appeals Court ‘Sends Clear Message,” Ensuring School Tax Referendum Stays on Ballot


by Gregory Sirico

Hillsborough County's tax referendum is back on the 2024 ballot, promising $177 million for schools and empowering residents to decide the future of education.

Graduation cap in air surrounded by pencils and money

Find the Best Lawyers for Your Needs


by Jennifer Verta

Discover how Best Lawyers simplifies the attorney search process.

A focused woman with dark hair wearing a green top and beige blazer, working on a tablet in a dimly

Key Developments and Trends in U.S. Commercial Litigation


by Justin Smulison

Whether it's multibillion-dollar water cleanliness verdicts or college athletes vying for the right to compensation, the state of litigation remains strong.

Basketball sits in front of stacks of money

Woman on a Mission


by Rebecca Blackwell

Baker Botts partner and intellectual property chair Christa Brown-Sanford discusses how she juggles work, personal life, being a mentor and leadership duties.

Woman in green dress crossing her arms and posing for headshot

Best Lawyers Celebrates Women in the Law: Ninth Edition


by Alliccia Odeyemi

Released in both print and digital form, Best Lawyers Ninth Edition of Women in the Law features stories of inspiring leadership and timely legal issues.

Lawyer in green dress stands with hands on table and cityscape in background

The Human Cost


by Justin Smulison

2 new EU laws aim to reshape global business by enforcing ethical supply chains, focusing on human rights and sustainability

Worker wearing hat stands in field carrying equipemtn

Beyond the Billables


by Michele M. Jochner

In a recently conducted, comprehensive study, data reveals a plethora of hidden realities that parents working full-time in the legal industry face every day.

Women in business attire pushing stroller takes a phone call