To protect your assets before moving to a nursing home in CT is one of the most important steps you can take to maintain financial stability during a difficult transition. When long-term care becomes necessary for you or someone you love, the emotional worry is often matched by financial stress. Nursing home costs in Connecticut can rise quickly and overwhelm savings. However, with smart planning and a clear understanding of Medicaid rules, you can preserve a meaningful portion of your estate.
At Farrell & Grochowski in Wallingford, CT, we guide families through these decisions so they can secure care and protect what they’ve built.
How Medicaid Rules Affect How You Protect Your Assets Before Moving to a Nursing Home in CT
Before you begin planning, it helps to understand how Medicaid – often referred to as Title 19 – handles your assets and income in Connecticut. Learn more
Strict Asset Thresholds
Medicaid has very strict asset limits for long-term care applicants. Individuals may only keep a small amount of countable assets (often around $1,600 depending on program rules).
Fortunately, not all property counts. Connecticut considers some assets “non-countable,” including:
- Personal belongings
- One necessary vehicle
- Certain burial funds
- A primary residence (in specific circumstances, such as when a spouse still lives there)
You may review updated asset rules directly from the Connecticut Department of Social Services.
The Five-Year Look-Back Period
Connecticut applies a five-year look-back, meaning Medicaid reviews transfers made up to five years before the application date.
If assets were transferred for less than fair market value, Medicaid may:
- Impose a penalty
- Delay eligibility
- Treat the transfer as a recoverable debt
Because of this, timing matters significantly.
Spousal Protections
If one spouse needs nursing home care and the other stays at home, the “community spouse” receives important protections. For example, in 2025 the community spouse may keep up to 50% of combined assets, capped at roughly $157,920.
Additional income allowances ensure the spouse can maintain a basic standard of living. For an overview, see the federal guidance on Medicaid Spousal Impoverishment Protections.
Strategies to Protect Your Assets Before Moving to a Nursing Home in CT
While every family’s needs differ, several planning tools can help safeguard your assets while preparing for potential long-term care.
Using Trusts to Protect Your Assets Before Moving to a Nursing Home in CT
An irrevocable trust is one of the most reliable long-term planning options.
- It transfers assets out of your name so they don’t count toward Medicaid limits.
- A trustee manages the trust according to your instructions.
- It must be created more than five years before applying for Medicaid.
If a trust is structured incorrectly, however, it may still create Medicaid penalties – so legal guidance is essential.
Connecticut Partnership for Long-Term Care
Connecticut’s Partnership Program allows long-term care insurance policyholders to protect additional assets equal to the benefits their policy pays.
Example:
If a Partnership policy pays out $250,000 in benefits, you may be able to protect $250,000 of your own assets from the Medicaid spend-down process.
This can be a powerful estate-preservation strategy.
Spousal Asset Allocation & Thoughtful Spend-Down
Married couples may legally “spend down” excess assets on:
- Home repairs
- Paying off debt
- Mobility or safety improvements
- Purchasing exempt items
When the transaction is at fair market value, Medicaid typically allows it.
Prepaid Burial Contracts & Life Insurance Options
Connecticut excludes certain burial contracts, burial plots, and some life insurance policies from its countable assets list. An irrevocable funeral contract can be a practical planning tool when set up properly.
Risks, Legal Considerations & Common Mistakes
While asset protection strategies can be helpful, mistakes can be costly:
- Penalty periods caused by transfers during the look-back
- Financial liability to the nursing home for improper transfers
- Criminal exposure for paid advice that intentionally triggers ineligibility
- Estate recovery after death
- Trust mismanagement, especially when the trustee lacks experience
Because the rules are strict, professional guidance matters.
Best Practices for Smart Long-Term Care Planning
Start Early
Early planning gives you the widest range of legal options and reduces the risk of Medicaid penalties.
Work With an Experienced Elder-Law Attorney
At Farrell & Grochowski, we help Connecticut families build Medicaid, trust, and long-term care plans that reflect their real-life goals.
You can learn more about our approach on our Services page
Maintain Good Documentation
Keep receipts, appraisals, transfer records, and trust documents organized and accessible.
Review Long-Term Care Insurance
Some plans qualify under the Connecticut Partnership Program and provide extra protection.
Communicate with Loved Ones
Sharing your goals with family helps avoid misunderstandings and ensures everyone is on the same page.
Conclusion
Protecting your assets before entering a nursing home in Connecticut is absolutely possible – especially when you plan ahead. With the right strategies, you can access the care you need while still preserving your home, savings, and legacy for future generations.
If you’re preparing for long-term care or want to explore Medicaid planning options, Farrell & Grochowski in Wallingford, CT is here to help.
Contact us today to schedule a consultation and start building a plan that protects what matters most.
