John Crow 
If you or a loved one in Paris, Tennessee is considering long term care, you may have heard about Medicaid Asset Protection Trusts, often abbreviated as MAPTs. These trusts can help protect family assets while you qualify for Medicaid assistance to pay for nursing home or assisted living costs. Below is a clear, local guide to how a Medicaid trust works and when it may be the right fit.
Why Medicaid Planning Matters in Paris, Tennessee
Families in Henry County often face hard financial choices when a parent or spouse needs nursing care. Nursing homes in West Tennessee often cost between $7,000 and $9,000 per month, which can deplete savings quickly. Many families assume that Medicare will pay for long term care, but it will not. Medicaid is the program that pays for long term care once a person meets strict income and asset limits.
A Medicaid trust is one planning tool that can preserve your home, savings, and investments so that you can qualify for benefits at the right time.
What Is a Medicaid Trust?
A Medicaid Asset Protection Trust is an irrevocable trust. Once assets are transferred to it, you no longer own those assets personally. As a result, the state will not count those assets when it reviews eligibility after the look back period has passed.
A properly drafted trust can help you:
- Protect the home or savings from a complete spend down on nursing care.
- Direct assets to children or other beneficiaries at the appropriate time.
- Retain certain rights, such as living in your home or receiving income from trust investments.
How the Medicaid Five Year Look Back Period Works
When assets are transferred to a Medicaid trust, Tennessee applies a five year look back period. The state reviews gifts and transfers made within the five years before a Medicaid application. Transfers during that window can create a penalty period. Planning ahead is important. Families in Paris and nearby communities such as McKenzie, Big Sandy, Camden, and Dresden should begin planning at least five years before they anticipate needing nursing care.
Who Controls the Medicaid Trust?
You, as the Grantor, appoint a Trustee, often an adult child or trusted relative, to manage trust assets under your written instructions. The Grantor should not serve as Trustee. You may retain certain rights without owning the principal itself:
- The right to receive income from trust investments.
- The right to live in your home if it is placed in the trust.
- The right to change beneficiaries through a limited power of appointment.
Because the trust is irrevocable, you cannot dissolve it or take back the principal after funding. That feature is what gives the trust its protection for Medicaid eligibility.
Local Example in Henry County
Helen, an 84 year old widow in Paris, owns her home and has $200,000 in savings. Her daughter is concerned that if she enters a nursing home, the family will spend everything within a few years.
Helen creates and funds a Medicaid Asset Protection Trust. She transfers the home and $150,000 to the trust. She continues to live in the home and receives income from the invested funds. After five years, those assets are protected for eligibility purposes. If she later applies for Medicaid, the state will not count the trust assets. After her death, the remaining trust assets pass to her grandchildren according to the trust terms.
Why Local Counsel Matters
Tennessee Medicaid rules are complex, and small errors can cause long delays or loss of benefits. Working with an attorney familiar with West Tennessee practice helps ensure that the trust design, funding, and timing match your goals and the rules in effect. Coordination with your existing estate plan is also key, especially if you already have a revocable living trust or beneficiary designations on accounts.
When a Medicaid Trust Makes Sense
A Medicaid trust is most useful when:
- You are healthy enough to plan at least five years before you expect to need nursing care.
- You own a home or have savings that you want to protect for your family.
- You want to avoid a rapid spend down and maintain predictability for care costs.
If care is needed soon, other tools may be a better fit, such as Medicaid compliant annuities or written personal care agreements.
Next Steps for Families in Paris
Families in Paris and across Henry County work hard to build a home, savings, and a legacy. A Medicaid Asset Protection Trust can safeguard that legacy while still allowing access to needed care. A short consultation can help you decide whether this trust or another approach best fits your situation and timing.
About Crow Estate Planning & Probate, PLC
Crow Estate Planning & Probate, PLC is headquartered in Clarksville, Tennessee, with additional offices serving clients throughout Middle Tennessee and Western Kentucky. Our firm regularly assists families in Henry County, including the Paris area, with estate planning, probate, conservatorships, and elder law matters. We offer convenient telephone and video conferences to make the planning process as simple and accessible as possible.
Our attorneys focus exclusively on estate and elder law, bringing decades of combined experience to each family we serve. Whether you are creating a Medicaid Asset Protection Trust, administering a loved one’s estate, or establishing a conservatorship, our goal is to provide clarity, compassion, and results. To learn more or schedule a consultation, contact Crow Estate Planning & Probate today.
About the Author
John Crow is the founder, owner, and principal attorney of Crow Estate Planning and Probate, PLC. With over a decade of legal experience in the areas of estate planning, probate, conservatorships, guardianships, and business planning, he serves clients in the greater Middle Tennessee and Western Kentucky regions. He obtained his Bachelor of Arts degree in History from Vanderbilt University, then later received his Juris Doctorate from the Cumberland School of Law at Samford University. He is a lifelong Clarksville resident and is honored to have helped so many families over the years. Learn More.
Licensed in Tennessee and Kentucky