For many families, a home is more than a roof and walls. A home holds decades of memories,

stability, and emotional connection. But when a loved one requires long-term care, that same home can be put at risk. Without proper planning, nursing home costs can force families to sell property or drain savings just to afford care. If you’re looking for ways to protect your house from nursing home costs, you’re not alone and, most importantly, you do have options.

Why It’s Important to Protect Your House From Nursing Home Costs

The average cost of nursing home care can easily exceed $100,000 a year in Tennessee. Medicaid can help cover the expense, but qualifying often requires reducing assets to very low limits. In some cases, that includes counting the value of a home, unless specific steps are taken in advance. This is why families are encouraged to take action early, before a health crisis forces quick, expensive decisions.

How Legal Planning Can Help Protect Your House From Nursing Home Costs

One approach many families explore is transferring the home into a trust. A properly drafted irrevocable trust, created by an elder law attorney, can allow a parent to continue living in the home while legally removing it from their name. After a five-year look-back period for Medicaid eligibility, the home is no longer considered a countable asset. That means the parent may qualify for long-term care benefits without the state placing a lien on the property after their death.

Another common strategy is to ensure that the house is titled correctly. If a spouse continues living in the home, Medicaid does not force its sale. But once both spouses are gone, the state can seek reimbursement through the estate. Adding a life estate or adjusting the deed can prevent this, but it must be done carefully to avoid unintended consequences like tax issues or loss of control.

Real Life Examples of Protecting the Home

Take the case of a widowed father diagnosed with Alzheimer’s. His daughter moves in to help care for him. Eventually, he needs full-time nursing care. Because she provided care at home for more than two years before the move, she may qualify for the “caretaker child exemption,” allowing him to transfer the house to her without penalty. That’s one way families can protect their house from nursing home costs, but it requires knowledge of specific rules and careful documentation.

In another example, a married couple comes to an elder law attorney after one spouse has already entered a nursing home. With the right planning, the spouse at home, who is called the “community spouse,” can keep the home and avoid impoverishment. But without legal guidance, families may assume they must sell or spend down assets unnecessarily.

Protecting Your Home With A Special Needs Trust

Another important reason to consider creating a trust is to protect a child with a disability. A Special Needs Trust (also called a Supplemental Needs Trust) allows parents to set aside assets, including a home, for the benefit of their child without jeopardizing that child’s eligibility for government programs like Medicaid or Supplemental Security Income (SSI). Leaving property directly to a child with special needs could unintentionally disqualify them from these vital benefits, but placing assets in a properly drafted Special Needs Trust ensures they receive support without losing access to care or assistance. An elder law attorney can help families set up the right trust to safeguard both their loved one’s future and their home.

Planning Ahead Is the Best Way to Protect Your House From Nursing Home Costs

The earlier you begin, the more options are available. Planning ahead allows families to structure their finances, update legal documents, and consider trusts or exemptions that might otherwise be unavailable in a crisis. Knowing that your home won’t be lost because of long-term care expenses helps families focus on quality of life and compassionate care.

Let Johnson McGinnis Help You Protect Your House From Nursing Home Costs

You don’t have to figure this out on your own. At Johnson McGinnis Elder Law & Estate Planning, we guide families through every step of long-term care planning with compassion and clarity. If you're in the Nashville, Tennessee area and are concerned about protecting your house from nursing home costs, contact us. Let’s build a plan that keeps your loved one safe and your home right where it belongs.