Protect Your Home from Long-Term Care Costs
Your home is likely your most valuable asset, yet it’s also one of the most at risk. In Arizona, long-term care can cost more than $90,000 a year. Without proper planning, those expenses can drain your savings and force the sale of your home. Many homeowners believe a Will or adding a child’s name to the deed keeps property safe, but that assumption often backfires. To keep your home secure, you need the right legal protection in place.
Why a Will or Adding a Name Fails
A Will determines who inherits your home after you pass away, but it offers no protection during your lifetime. It cannot shield property from medical creditors or nursing home costs. Adding a child’s name to the title can cause new problems. It may trigger capital gains taxes, expose your home to their debts, or violate Medicaid eligibility rules. In short, neither approach prevents the state from recovering care costs after death.
The Real Solution: A Medicaid Protection Trust
A Medicaid Protection Trust, also known as an Irrevocable Income-Only Trust, creates a legal barrier between your home and potential creditors. Once the home is transferred to the trust, it no longer counts as your personal asset for Medicaid purposes. You can still live there and pay related expenses, but ownership belongs to the trust, not you. After five years, Medicaid cannot touch it to recover long-term care costs.
Timing matters. Arizona enforces a five-year Medicaid look-back rule, meaning any transfers within five years of applying for Medicaid can lead to penalties. Setting up the trust early helps you qualify for assistance later while keeping your home in your family’s hands.
For reference, review the Arizona Medicaid Eligibility and Look-Back Rules and the AHCCCS Member Handbook.
How the Trust Protects You
Once your home sits inside the trust, it is no longer a “countable asset” under Medicaid rules. Your spouse can continue living in the home. When both spouses pass, your children can inherit it without facing liens or forced sale. A Medicaid Protection Trust also keeps your estate private, unlike a Will, which becomes public record during probate. That privacy can spare your family unwanted attention and added stress.
Plan Early and Review Often
Building a trust before you need care gives you the most protection. Review it each year to confirm it still meets Arizona’s Medicaid and ALTCS (Arizona Long Term Care System) requirements. Since Medicaid laws can change, keeping your plan current ensures it continues to protect your home and savings. Acting early keeps options open, reduces risk, and safeguards everything you’ve earned.
Take Action Now
Every year you delay, your planning options narrow. Creating a Medicaid Protection Trust while you’re healthy ensures full control and eligibility later. You’ll protect your home, preserve family stability, and avoid costly care-related losses. This single step can make the difference between losing your home and passing it to your loved ones intact.
Contact Metropolitan Law Group
If you want to protect your home from future nursing home costs, contact Metropolitan Law Group in Chandler, Arizona. Our experienced estate planning attorneys design Medicaid Protection Trusts that meet AHCCCS guidelines and protect family assets. Call 480-409-8200 or schedule your complimentary 15-minute Discovery Call with a knowledgeable staff member today.
