As you get older, your legal priorities start to shift. This is when an elder law attorney can step in to help you protect your independence, your savings, and your choices as the years go on.
One area that catches many people off guard is long-term care. It’s easy to assume Medicare will cover the cost if you ever need help with your day-to-day tasks, but it doesn’t. Medicare doesn’t pay for the custodial care you may receive at home or in a nursing facility.
Long-Term Care Costs
Even if you have done well throughout your life, it is not easy to pay for long-term care out of pocket. According to Genworth Financial, the median annual cost for a private room in a nursing home in Westport, Connecticut, is $231,209 in 2025.
The median yearly cost for a home health aide is over $82,000, so the numbers are significant across the board. One round of long-term care costs would be difficult to handle for most people, and they can be doubled for married couples.
Medicaid Eligibility
There is a solution that comes as a surprise to some people. Though Medicare will not cover long-term care, Medicaid coverage does extend to this area. Of course, it is a need-based benefit, so you can’t qualify if you have more than $1,600 in your name.
This can sound like a dealbreaker, but there is a bigger picture to consider. If you take the right steps far enough in advance, you can potentially shape a financial profile that will lead to eligibility without disrupting your day-to-day lifestyle.
Irrevocable, Income-Only Medicaid Trust
You can build your nursing home asset protection plan around an irrevocable Medicaid trust, but timing is key. If you fund the trust at least five years before you apply for Medicaid coverage, the assets held by the trust would not count.
On the downside, you cannot access the principal once you have transferred the resources to the trust. The good news is that you can continue to receive distributions of the trust’s earnings until and unless you apply for Medicaid.
Home Ownership
Some assets do not count when you are applying for Medicaid. These would include wedding rings, engagement rings, heirloom jewelry, personal belongings, household items, one motor vehicle, $1,500 of whole life insurance, and unlimited term life insurance.
The most significant asset that is not counted is your home with an equity limit of $1.097 million in Connecticut in 2025. That can sound like a very good thing, but there is an added element.
Medicaid Estate Recovery
Medicaid is a jointly administered federal/state government program. Under the guidelines, the state is required to seek reimbursement from the estates of deceased beneficiaries. Since you cannot qualify if you own significant property, there is usually nothing to take.
The one exception would be a home, since your residential property is exempt when you apply. As a response, you could choose to convey your home to the trust. You would still live in the home as usual, but the trust would technically be the owner of the property.
Because of this arrangement, the home would be protected during the Medicare estate recovery process. It would become the property of the beneficiary that you name in the trust declaration.
Schedule Your Consultation Today!
When you take the right steps to address potential long-term care costs, you can go forward with peace of mind. If you are ready to get started, we are here to help.
We have an office in Westport, CT, and we have another location in Glastonbury. You can call us at 860-548-1000 to schedule a consultation at either location, and you can fill out our contact form if you would prefer to send us a message.
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