Debunking the Myth: Can Medicaid Really Take Your House?

One of the most persistent myths about Medicaid is that the government can seize your family home for reimbursement once the owner has spent time in a nursing home. While this can happen in certain circumstances, it is not always true, often causing unnecessary stress and anxiety for families considering Medicaid for long-term care. Let's set the record straight and explore the truth behind this common misunderstanding.

The Truth About Medicaid and Your Home

Contrary to popular belief, Medicaid cannot simply take your house, nor do they want to. This is one of the most prevalent myths surrounding Medicaid, and it's important to understand the facts:

1. Your Home is Protected: While you're alive, Medicaid generally cannot take your home or force its sale as long as you or your spouse are living in the home.

2. Spousal Impoverishment Protection: Federal law provides safeguards to prevent the impoverishment of the spouse who remains in the community when their partner requires long-term care.

3. Home Equity Limits: Some states have minimum estate values below which they won't pursue recovery. For example:

• Texas doesn't seek reimbursement if the estate is worth less than $10,000

• Georgia's limit is $25,000 

Understanding Medicaid Estate Recovery

While Medicaid cannot take your home while you or your spouse are living, it's important to be aware of Medicaid Estate Recovery Programs (MERP):

• After the Medicaid recipient's death, the state may seek reimbursement from their estate for the cost of care provided.

• This process typically only occurs after both spouses have passed away.

• There are exceptions and protections in place, especially if certain family members are still living in the home.

Protecting Your Home and Assets

To ensure your home and assets are protected, consider the following strategies:

1. Consult with a Medicaid Planning Attorney: They can help you navigate the complex rules and develop a plan to protect your assets.

2. Explore Medicaid Trusts: These trusts can help protect your home from estate recovery while still allowing you to qualify for Medicaid.

3. Understand Spousal Protections: Familiarize yourself with the spousal impoverishment rules in your state, which are designed to protect the community spouse's financial well-being.

Remember, Medicaid rules can be complex and vary by state. It's always best to consult with a qualified elder law attorney or Medicaid planning professional licensed in your state to understand how these rules apply to your specific situation.

If you're concerned about how Medicaid may impact your home and assets, it’s crucial to get informed and take proactive steps. At Sammartino & Sultan Law Group, we specialize in estate planning and Medicaid issues. Our experienced team can provide personalized guidance tailored to your unique situation. Contact us today to schedule a consultation.

Let us help you navigate these complexities and secure peace of mind for you and your family. Your home deserves protection, and we are here to assist you every step of the way!

About the Author

Christina has been practicing law in New York State, for over 7 years. She is a Pace University School of Law graduate. After passing the New York and New Jersey Bar Exams, she went on to work for several law firms with primary practice areas in Real Estate, Estate Planning, Estate Administrations, Guardianship proceedings under Article 81 of the Mental Hygiene Law, and Article 17A, Medicaid planning and applications. Christina is also certified as a Guardian, Court Evaluator, and Attorney for the AIP under Part 36 of the Rules of the Chief Judge.