Trusts and Long-Term Care Planning
If you use a Will Trust for the family home and your spouse dies, you as the surviving spouse will retain a "Life Interest" – the right to reside in the house and the income from any sale proceeds if the property must be sold. If you need to pay for care, the local government may assess only your portion of the home's value.
Typically, the portion owned by the Trust is not tallied. Thus, it is protected from nursing home costs. Government regulations suggest that this arrangement will not be challenged as 'Deliberate Deprivation,' which means that you divide your assets intentionally to avoid paying high nursing home fees.