Mom is currently living in her home which she continues to pay the remainder of the mortgage out of Social Security. Family members are paying for utilities. We are in Arizona. Various family members are pitching in when needed, but she currently is being cared for by caregivers.
See an elder law attorney. If there is some way you can accomplish what you hope to DESPITE the government and its taxpayers, that will be the person to ask.
Is it fair that the person can't have enough money on hand to replace an air conditioner? Who is going to pay for that? The family who you think it is not fair to inherit the house?
What about renters who can't have over $2,000 without being disqualified? What's fair in the way of medicaid distribution, lookback and clawback seems to be determined by whichever state you live in. So one state's residents are allowed one thing and other state's aren't? Which state's rules are fair and which ones aren't? Doesn't seem like the system is fair, either.
And don't tell me "some people saved for their retirement". There are people who have have saved have lost their savings through adversity, circumstances, or no fault of their own. Or been unable to save for the same reasons. Some people who have the means to fund themselves had help from other's along the way or better circumstances or luck than some whether they recognize it or not, and contrary to their own opinions are not all powerful and completely and solely responsible for their own fortunate situation.
What is fairer--for the families of those with little means to be able to protect the home from medicaid and inherit and so possibly improve the futures of those kids and grandkids or for the rich to use their tax loopholes to avoid paying into the system and pass that unfairly accumulated wealth down? But, "gee, they didn't have to go on medicaid and so they must have been more responsible people who worked harder and planned well". NOT!
BUT….
Here’s what I’d be more concerned about, find out if the Medicaid program she is on currently is included in the Estate recovery / MERP system. Folks tend to think it’s only LTC NH Medicaid, but some States will attempt recovery on all community based Medicaid programs (like in home care, PACE) and some will do it on Medicaid health insurance premiums as well. All for those first applying on over age 55. She might already have a Medicaid tally that the State will attempt to recover from her after death assets done via estate recovery/ MERP. If she already has a lien from years of in home care paid by Medicaid, she may owe more than her equity left after paying off the mortgage.
it’s looking like your mom is almost at imminent need of a NH, thinking about asset shielding and Medicaid planning via a “trust” is imo a waste of time, energy and emotion. That ship has sailed. I’m not trying to be harsh, it’s the reality of the situation.
Please do realize, She can go into a NH and onto LTC Medicaid and continue to keep her home as an exempt asset for her lifetime. But her income will be a copay to the NH. So family will need to pay the mortgage & all property costs. And pay for & deal with whatever after death needed (probate and Estate Recovery). If heirs have likely exemptions or exclusions to MERP, it can make sense to do this if they can afford it and are ok on risk that it may not work out. Most of the time, the #’s just don’t work, so house gets sold.