Can a Nursing Home Claim Your House? Here's What You Need to Know

For many families, the idea that a nursing home can take possession of a home is a daunting concern. The good news is that while nursing homes themselves do not have the authority to seize your home, there are circumstances related to Medicaid that might affect the home if it's part of the estate. Understanding the mechanics can help you plan better to protect your assets.

Understanding Medicaid and Estate Recovery

When a person applies for Medicaid to cover long-term care in a nursing home, Medicaid becomes a creditor of their estate. Under federal law, after the Medicaid recipient passes away, the state can attempt to recover the costs paid for nursing home care. This process is known as estate recovery.

Key points to remember:

• Medicaid Estate Recovery typically takes place only after the death of the Medicaid recipient.
• The recovery is often limited to the recipient's estate, which may include a home if it was considered as part of the estate during probate.

However, this does not mean that you lose your home immediately once you apply for Medicaid. Several protections and exemptions may keep your home safe for a spouse, minor, or disabled child.

Protections Against Estate Recovery

Medicaid provides certain exemptions to protect homes:

1. Surviving Spouse: If the Medicaid recipient's spouse is still living, the home cannot be subjected to estate recovery until the spouse passes away.
2. Minor or Disabled Children: If the Medicaid recipient has a child who is under 21 or who is blind or permanently disabled, the state cannot recover from the estate until the child passes away.
3. Sibling Equity Rule: If a sibling of the Medicaid recipient has been living in the home for at least a year before the recipient moved into a nursing home, and still lives there, they might be able to retain ownership.

Planning Ahead

One way to prepare for these situations is through estate planning. This includes setting up trusts, which may help to protect your home from being counted as part of an estate subject to Medicaid recovery. A revocable living trust can help preserve assets while retaining some flexibility and control during a person's lifetime.

Exploring Other Financial Assistance Options

Protecting your home is just one piece of the financial puzzle. There are a plethora of options available for families juggling the high costs of nursing home care and other financial responsibilities:

• Veteran Benefits: If the Medicaid recipient is a veteran, they may qualify for VA Aid and Attendance benefits to help offset the costs of long-term care.
• Long-Term Care Insurance: This insurance option can cover the costs of nursing home care without involving Medicaid, thus not subjecting the estate to recovery.
• Government Aid Programs: Low-income families might qualify for additional state and federal programs meant to ease financial burdens.
• Debt Relief Solutions: If nursing home expenses have led to debt accumulation, exploring debt relief or consolidation options might offer a structured way to manage and repay debts.

Planning and understanding these protections and assistance options will help keep your home safe while providing essential care for loved ones.

🛡️ Financial Assistance Resources:

• Medicaid Protections: Benefits for certain family members to protect the home from estate recovery.
• VA Aid and Attendance: Additional financial support for veterans needing long-term care.
• Long-Term Care Insurance: Covers care costs, mitigating the need for Medicaid.
• State and Federal Aid: Various programs to assist with financial burdens.
• Debt Relief Options: Services that offer structured debt management plans.