When can nursing home take your house? It is important when making long term decisions about a family member’s care that you understand all aspects of how the nursing home bills its services and what assets are at risk.
In this article, we will explain when a nursing home can take your house to help cover any outstanding bill balances. We will also look at other options for protecting your assets and other resources that may be available.
When Can Nursing Home Take Your House?
It is usually necessary to liquidate assets such as a house or investments in order to apply for Medicaid benefits.
There are some exceptions, such as having a spouse or dependents living in the home, which may allow you to keep your house while still receiving Medicaid coverage.
If You’re Married
When it comes to long-term care for married couples, the state will often put a lien on the home of the spouse who remains at home in order to recoup any costs associated with caring for the other spouse.
This means that once both spouses pass away, the proceeds from the sale of their home will go toward settling the lien.
However, if only one spouse requires long-term care and they outlive their partner, then the state may require you to sell your home in order to fund their nursing home costs.
If You’re Single or Widowed
Single or widowed people who qualify for assistance may need to sell their home in order to obtain the assistance.
Exceptions exist, such as if an adult child cared for the person prior to death and can retain ownership of the home. It is important to discuss these scenarios with a lawyer early on to ensure qualification criteria are met.
Can Medicaid Take My Home? Different Scenarios Explained
Medicaid cannot take an individual’s home as long as the individual’s home equity interest is under a certain amount, which in most states is $2,000. In 2023, this limit will vary state-by-state and range between $688,000 and $1,033,000.
It is important for people to be aware of these limits so they can ensure that their homes are protected in case they need to use Medicaid services.
Single and moving to a nursing home
When a single person is moving to a nursing home, they should provide a written statement of “Intent to Return” home. This will allow their home to remain exempt under Medicaid rules as long as their home equity interest is under a specified value.
Home equity is the value of the home minus any debt against it, and equity interest is the amount in which the individual owns. In 2023, the equity interest limit is generally either $688,000 or $1,033,000; however California has no limit.
Single and grown children live in the home
Living with an adult child may exempt one from any home equity interest limit, regardless of the state in which one resides, if the adult child is disabled or blind. O
therwise, depending on the state, there may be a limit to how much equity can be owned that ranges from $688,000 to $1,033,000. This amount is based on the value of the home minus any debt against it.
Single and has passed away
When a Medicaid recipient passes away, the state may attempt to recover the cost of long-term care that it paid for through a home sale. This is done to ensure that the taxpayer money is not wasted and that it goes towards helping other individuals in need.
However, if the deceased has a child who is disabled, blind, or under 21 years of age, then the state cannot do this.
This is because these children are considered vulnerable and they should not be put in a situation where they have to worry about losing their home due to their parent’s death.
Conclusion
When planning for long-term care, it is important to understand when a nursing home can take your home. Generally, married couples must liquidate assets to receive coverage while single and widowed people may have to do the same depending on their situation.
In 2023, Medicaid cannot take an individual’s home if its equity interest is under a certain amount, which varies by state. If living with an adult child who is disabled or blind, this limit may be exempt.
After death, the state may attempt to recover costs through a home sale except if there are vulnerable minors involved.
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