Yes, owning a home can affect your Medicaid eligibility, depending on several factors. These include whether the home is your primary residence, whether a spouse or other family members still live in it, and whether the property is a second home or used as a rental.
When older adults enter a nursing home, their home is generally excluded from Medicaid’s asset limits if they intend to return, a qualifying family member lives there, or the home’s equity falls below the state’s threshold.
It is important to consult with an attorney for advice on your specific situation. Our elder care lawyers in Marietta have helped over 7,000 families through the legal challenges that come with getting older. Call today to request a Legacy Planning meeting to discuss your concerns.
When Owning a Home Doesn’t Affect Medicaid Eligibility
Owning a home doesn’t automatically affect your Medicaid eligibility. Whether or not it does may depend on how Medicaid treats it under asset rules. In many cases, the house can be considered an exempt asset if certain conditions are met. These include:
You Live in or Intend to Return to the Home
Medicaid generally exempts your primary residence if you live in the home or you express an intent to return, even if you are currently in a nursing facility. This exemption only applies to your main residence and is subject to a limit on the home’s equity value.
Your Spouse or a Dependent Lives in the Home
If your spouse lives in the home, or if you have a child under the age of 21 or a child who is blind or disabled, the home is not counted as an asset, regardless of its value.
In Georgia, this protection is extended to caretaker children who reside in the home for at least two years and have provided care that helped delay their move to a nursing facility.
The Home Is Held in Certain Types of Trusts
Your home may also be protected if placed into a Medicaid-compliant trust. However, you must do this at least five years before applying for Medicaid due to the program’s look-back period.
Our Absolute Protection Trust™ can help you prepare for Medicaid eligibility while retaining the flexibility to make alterations as your life changes.
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When Owning a Home Does Affect Medicaid EligibilitySometimes, owning a home does affect your Medicaid eligibility. Although a home can often be excluded from Medicaid’s asset limits, there are situations where owning a house can create complications. These include:
You No Longer Live in the Home and Don’t Intend to Return
If you move into a nursing home and do not declare an intention to return home, Medicaid may consider your home a non-exempt asset. This could raise your total countable assets above the Medicaid limit and make you ineligible until the home is sold or its value is otherwise addressed.
The Home’s Equity Exceeds the Allowed Limit
Even if you plan to return home, the home must have equity below a certain threshold set by the state to remain exempt. If your home equity exceeds that threshold, the extra value might affect your Medicaid eligibility unless a spouse or other qualifying relative resides there.
You Transfer Ownership Improperly Within the Look-Back Period
If you give away your home or sell it for less than its fair market value within five years before applying for Medicaid, this could trigger a penalty period. During this time, Medicaid will not cover your long-term care.
No Spouse or Dependent Relative Lives in the Home
If the home is not your primary residence and no spouse, minor, or disabled child lives there, Medicaid is more likely to consider it an asset. Even if you previously lived there, its value might jeopardize your eligibility unless you meet other exemption criteria.
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What Is Medicaid Estate Recovery?
In Georgia, Medicaid can seek repayment for long-term care costs after a recipient’s death through the Estate Recovery program, often targeting the home if it’s part of the probate estate.
The home may be exempt during life if you live there, intend to return, or have a spouse or dependent child living in it. However, after death, the state may recover costs by placing a lien or forcing the sale of the home, unless a spouse, minor, or disabled child still lives there.
Recovery only applies to assets that go through probate, and proper estate planning can help avoid that. Georgia enforces recovery for individuals 55 or older who received long-term care Medicaid.
Get Help Understanding Medicaid Eligibility
If you are wondering if owning a home can affect your Medicaid eligibility, you probably have many additional questions concerning Medicaid and other aspects of elder law. Smart estate planning means you’ll be prepared for whatever comes next, and that means starting early.
Since 2014, Nelson Elder Care Law has been helping people protect their home, even within the lookback period. We can help you manage the complex maze of Medicaid eligibility, asset protection, and estate planning. Call today to request a Legacy Planning Meeting.
