How to Protect Your Home from Nursing Home Costs in Kansas
Many Kansas families worry about losing the family home when a spouse or parent needs long‑term care. The fear of having to sell the house — or losing it entirely — is extremely common. But the real risk isn’t when you act; it’s how you structure your planning.
Unfortunately, a common misconception is that giving away your home before your health declines protects it. The truth is that who you give it to matters far more than timing, and doing it incorrectly can expose your home to risks you never expected.
This blog explains the real dangers of direct gifting, the hidden costs of doing it the wrong way, and the right legal strategy Kansas families should consider.
Why Gifting the Home Directly to Children Is Risky
When people talk about “gifting the house,” they usually mean transferring legal title directly to one or more children. Unfortunately, that kind of transfer — while well‑intentioned — can create serious problems:
1. Exposure to Personal Liabilities
Once the title is in a child’s name, the home is subject to that child’s personal financial life, including:
Divorce — the home could be considered marital property
Bankruptcy — creditors may seize assets
Lawsuits — judgments against the child could reach the home
Illness or financial hardship — personal troubles can jeopardize the property
In other words, planning meant to protect your asset can have the opposite effect.
2. Undermining Your Original Intent
The entire point of planning is to provide for loved ones. But if the home is lost due to factors unrelated to your needs — like a child’s legal difficulties — it defeats the purpose.
Opportunity Costs of Gifting
There are other important implications that go beyond legal exposure:
Loss of Step‑Up in Basis
When appreciated property (like a home) is gifted during your lifetime, the recipient typically inherits your original tax basis. That means if they later sell the property, they may owe significant capital gains taxes — even if the home has been in the family for generations.
Proper trust‑based planning can preserve the step‑up in basis, which may reduce or eliminate those taxes atogether when the property is eventually sold.
Management Challenges
If the home is owned by multiple children, questions arise:
Who makes decisions about upkeep?
Who pays property taxes or utilities?
Who handles repairs?
Who gets to live there?
Without clear structure and authority, disputes among heirs are common and painful.
The Right Legal Strategy: Medicaid Asset Protection Trust
The best way to protect your home — and your intent — is not to give it outright to a child, but to place it into a Medicaid Asset Protection Trust (MAPT).
What a MAPT Accomplishes
Protects the home from children’s liabilities: Because the trust owns the home, it’s shielded from divorces, creditor claims, lawsuits, and other personal issues in the lives of your children.
Preserves tax advantages: A properly drafted trust can allow for a step‑up in basis on appreciated property, reducing future tax burdens.
Centralized management: You choose a trustee to manage the asset objectively, which avoids disputes among siblings.
Equitable treatment of children: You can provide clear instructions on how children benefit from the home or its value.
Importantly, placing the home in a trust starts the Medicaid look‑back period. Starting that clock sooner tends to help your overall Medicaid planning strategy.
Why Not Use Shortcuts?
Some outdated or simplistic tools are marketed as “simple fixes.” They “may” work, but they can also go terribly wrong.
Medicaid planning is not about shortcuts. It’s about structuring your assets in a way that is legally sound under Kansas law, protects your interests, and supports your family.
Final Thought
Your home is more than a financial asset — it’s a legacy. Protecting it requires an intentional, legally sound strategy, not shortcuts or misconceptions about timing.
If you want to explore the best way to protect your home and still qualify for Medicaid, we’re here to help.
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