The Five-Year Medicaid Rule: How to Protect Your Assets from Long-Term Care Costs in Denver
More than half of adults over 65 will eventually need long-term care. Many people assume that Medicare will cover these expenses, but that isn't the case. If you want to protect your savings and your home for your children, you need a plan that accounts for the five-year Medicaid rule.

At The McKenzie Law Firm, LLC, we help families in the Denver metro area navigate these complex rules. Whether you’re planning your weekend trip to the mountains or cheering on the Denver Nuggets, take a moment to consider if your current estate plan is ready for the future.
What is a Medicaid Asset Protection Trust?
A Medicaid Asset Protection Trust (MAPT) is the primary tool for protecting your assets from being drained by long-term care costs. This is an irrevocable trust, meaning it is a legal arrangement that holds your assets so you no longer technically own them.
Because the assets are in the trust, they generally do not count toward your financial eligibility for Medicaid. This allows you to qualify for assistance without having to spend down everything you’ve worked so hard to save.
Understanding the Five-Year Look-Back Period
The most critical part of this planning is the timing. Medicaid uses a five-year look-back period. When you apply for benefits, the state of Colorado reviews every financial transaction you’ve made in the last 60 months.
If you transferred money or property into a trust within that five-year window, Medicaid can penalize you. This often delays your eligibility, leaving you to pay for care out of pocket during the penalty period. Families who start this process early are in a much better position to protect their legacy.
Why You Should Start Planning Now
n the world of estate planning, timing is everything. To successfully use the five-year Medicaid rule to your advantage, you must set up your protections at least five years before you anticipate needing care.
If your current estate plan is more than five years old, or if you haven't started one yet, now is the time to act. We serve clients across Centennial and the entire Denver area, providing the expertise to ensure your assets remain secure in the long term.
Schedule Your Consultation Today
Don't wait until a health crisis forces your hand. Contact The McKenzie Law Firm, LLC today to discuss how a Medicaid Asset Protection Trust can work for you. We are proud to serve the Denver metro area and help our neighbors plan for a secure future.
Call us at 720-821-7604 or schedule a consultation on our contact page to get started.
The McKenzie Law Firm, LLC practices law exclusively in Colorado. This post is for general informational purposes only and does not constitute legal advice. Please consult a qualified attorney regarding your specific situation.
