ALTCS stands for Arizona Long Term Care System. It is a Medicaid program in Arizona that provides long-term care services to people with disabilities and the elderly who require assistance with daily activities, such as bathing, dressing, and eating. 

ALTCS offers a range of services to eligible individuals, including personal care, skilled nursing, respite care, home health care, and transportation services. 

To be eligible for ALTCS, individuals must meet certain medical and financial criteria. They must also be residents of Arizona and be assessed as needing a nursing home level of care. The program is funded by both state and federal government and is administered by the Arizona Health Care Cost Containment System (AHCCCS).

Income

The gross montly income limit in 2023 is $2,742 for an individual.  If an applicant for ALTCS is receiving more than this ammount monthly, an Income Only Trust (sometimes called a "Miller Trust") can be utilized to meet the ALTCS income criteria.

The income formula for a married couple is more complex, and you should get advice from an attorney.

Resources

The resource limit for ALTCS (Arizona Long Term Care System) is $2,000 for an individual applicant. This means that an individual applying for ALTCS cannot own more than $2,000 in countable assets, such as cash, investments, and real property (excluding their primary residence).

It's important to note that not all assets are counted towards the resource limit. For example, certain assets, such as a primary residence, personal belongings, and one vehicle, are generally considered exempt and are not counted towards the resource limit.

It is important to seek guidance to determine which assets are exempt and which are considered countable resources. The rules regarding ALTCS resource limits and exemptions can be complex, and it is important to ensure that you meet all the eligibility requirements before applying for the program.

Do 529 Accounts Impact Eligiblity for ALTCS?

A 529 account is considered a countable resource for ALTCS (Arizona Long Term Care System) eligibility purposes. A 529 account is a tax-advantaged investment account designed to help individuals save for education expenses. While contributions to a 529 account are generally tax-free, the account balance is considered a countable asset for ALTCS eligibility purposes.

However, it's important to note that there are some exceptions to this rule. For example, if the 529 account is owned by a parent but is intended to be used for the benefit of a child who is under the age of 21 and is disabled or blind, the account may be considered an exempt resource for ALTCS purposes.

It's important to seek guidance from a qualified professional to determine the impact of a 529 account on your ALTCS eligibility. They can help you understand the rules regarding countable resources and exemptions and help you develop a plan to meet the eligibility criteria for ALTCS if necessary.

Do UTMA Accounts Impact Eligibility for ALTCS?

UTMA (Uniform Transfers to Minors Act) accounts are considered countable resources for ALTCS (Arizona Long Term Care System) eligibility purposes. UTMA accounts are custodial accounts that are used to transfer assets to a minor without the need for a trust. While the assets in a UTMA account are held for the benefit of the minor, they are considered countable resources for ALTCS purposes.

If a person is applying for ALTCS and has a UTMA account, the account balance will be counted towards the resource limit. It's important to note that once the minor reaches the age of majority, 21 in Arizona, the assets in the UTMA account become the property of the minor and are no longer considered an asset of the custodian or the person who established the account.

It's important to seek guidance from a qualified professional to determine the impact of a UTMA account on your ALTCS eligibility. They can help you understand the rules regarding countable resources and exemptions and help you develop a plan to meet the eligibility criteria for ALTCS if necessary.