How to Protect Your Home from Long-Term Care Costs

For many Mainers, their home is their most valuable asset—and a cornerstone of their family legacy. But if long-term care becomes necessary, the cost can quickly consume your savings and even put your home at risk. At Beacon Legacy Law, we help families across Maine develop strategies to protect their homes while securing the care they need.

The Cost of Long-Term Care in Maine

Long-term care includes nursing homes, assisted living facilities, and in-home support for chronic illnesses or disabilities. In Maine, the average cost of a private nursing home room exceeds $10,000 per month.

Medicare doesn’t cover long-term care beyond a short stay. Medicaid (called MaineCare) does—but only if you meet strict income and asset limits. That’s why planning ahead is essential.

The Risk to Your Home

Without proper planning, your home may be subject to a Medicaid estate recovery claim after your death. This means the state could place a lien on your home and eventually force a sale to recoup benefits paid.

Strategies to Protect Your Home

1. Medicaid Asset Protection Trust (MAPT)

A MAPT is an irrevocable trust that holds your home and other assets. Because the trust—not you—owns the home, it’s not counted as part of your assets when applying for Medicaid.

Key Benefits:

• Protects your home from Medicaid estate recovery
• Allows you to live in your home for life
• Preserves eligibility for MaineCare

Important Considerations:

• Must be created at least five years before applying for Medicaid
• You cannot revoke or directly control the trust

2. Life Estate Deed

A life estate deed allows you to retain the right to live in your home for the rest of your life while naming someone else (typically a child) as the future owner.

Pros:

• Avoids probate
• Preserves your home from Medicaid recovery if properly timed

Cons:

• Limits flexibility in selling or refinancing
• May expose the home to the remainder beneficiary’s debts or liabilities

3. Caregiver Agreements

If a family member provides long-term care, a formal caregiver agreement can compensate them from your assets without triggering penalties.

Benefits:

• Legal way to transfer value before needing care
• Recognizes the work of family caregivers

4. Spousal Protections

If only one spouse needs long-term care, the other (community spouse) is entitled to retain the home and other exempt assets.

We help ensure:

• Your home is titled properly
• Spousal protections are maximized
• Future estate recovery risks are minimized

5. Long-Term Care Insurance

While not suitable for everyone, long-term care insurance can be part of a protection strategy. We help evaluate existing policies or coordinate legal planning to complement coverage.

The Medicaid Five-Year Look-Back

Transfers made within five years of a Medicaid application may trigger penalties that delay eligibility. That’s why early planning—before care is needed—is critical.

Crisis Planning Options

Even if you or a loved one already requires care, all is not lost. There may still be legal strategies to preserve some assets and qualify for Medicaid.

Our firm helps with:

• Medicaid applications and appeals
• Emergency asset restructuring
• Care coordination and eligibility strategy

Why Work with an Elder Law Attorney

Protecting your home from long-term care costs involves complex state and federal regulations. At Beacon Legacy Law, we:

• Understand MaineCare rules in detail
• Customize legal tools for your unique situation
• Handle all necessary documents and court filings
• Offer both proactive and crisis planning services

Our Process

Step 1: Consultation

We discuss your health, finances, and family goals.

Step 2: Plan Design

We recommend asset protection strategies suited to your timeline.

Step 3: Legal Document Preparation

We draft and execute trusts, deeds, and agreements.

Step 4: Medicaid Coordination

We guide you through qualification, applications, or appeals if needed.

Why Choose Beacon Legacy Law

As Bar Harbor’s trusted elder law firm, we help protect what matters most. Whether you’re planning for the future or facing immediate care needs, we bring compassion, clarity, and confidence to the process.