Protecting Your Vehicle from ALTCS Estate Recovery with a TOD in Arizona

SeniorVue Admin
Aug 21
2 min read

Updated: Sep 9

Arizona primary vehicle exemption for ALTCS eligibility with car and home in desert landscape.

Vehicle Exemption Under ALTCS

When applying for the Arizona Long Term Care System (ALTCS), your primary vehicle is exempt from being counted as a resource. ALTCS rules allow applicants to keep one vehicle, along with other exemptions such as:

One primary residence (within equity limits)
Household goods and personal effects
Burial and funeral plans

This means owning a vehicle does not affect eligibility for ALTCS.

ALTCS Estate Recovery and Vehicles

Although exempt for eligibility, vehicles may face estate recovery after death. ALTCS can seek repayment from assets that go through probate. If your car is part of your probate estate, it may be at risk.

Estate recovery in Arizona with car model, legal documents, and prohibition symbol showing risk to vehicles under ALTCS.

Why Probate Matters

If a vehicle passes through probate, ALTCS can file a claim against it. To protect it, you need to structure ownership so that the transfer happens outside probate.

Using a TOD to Protect Your Vehicle

Arizona offers a straightforward way to pass on a vehicle without probate: the Transfer on Death (TOD) designation.

Authorized by A.R.S. § 28-2055
Use Arizona MVD Beneficiary Designation Form (Form 96-0561)
Name one or more beneficiaries to receive the vehicle
After death, the beneficiary submits the form and death certificate to the MVD, and the title transfers into their name

Arizona Transfer on Death (TOD) vehicle title showing direct transfer of car ownership outside probate.

Benefits of TOD

Bypasses probate
Shields vehicle from ALTCS estate recovery
Simple, quick process for beneficiaries

Important Considerations

When setting up your TOD, keep these points in mind:

Title Language

If co-owned, use “OR” between names, not “AND.” Titles with “AND” may still trigger probate.

Value Limits

If the vehicle’s value exceeds $50,000, probate may be required despite TOD.

Keep Records Updated

Always confirm your TOD beneficiary designation is on file and current with the MVD.

Summary and Best Practices

To safeguard your vehicle and ensure a smooth transfer:

ALTCS Eligibility: Vehicle is exempt.
Estate Recovery: Protect against claims by avoiding probate.
TOD Setup: File Form 96-0561 with the MVD.
Check Title & Value: Ensure wording and asset value align with Arizona probate rules.

Next Steps for Protecting Your Vehicle

Protecting assets like your vehicle is an important part of ALTCS planning in Arizona. With a Transfer on Death (TOD) designation, you can shield your car from probate, avoid estate recovery, and make sure it passes smoothly to your loved ones.

Arizona family standing by vehicle with peace of mind after setting up Transfer on Death (TOD) to protect from ALTCS estate recovery.

If you’d like free support navigating ALTCS rules, vehicle exemptions, and TOD setup in Arizona, contact us today. Our team is here to provide guidance and resources so your family can make informed decisions with confidence.