Can Medicaid Take Your Home After Nursing Home Care?

If you’re concerned that Medicaid might take your home or your parents’ home after long-term care, you’re not alone. Many families are shocked to learn that Medicaid can pursue the value of a person’s estate after they pass — and homes are often the #1 target.

This guide will help you understand how Medicaid estate recovery works, when your home might be at risk, and what you can do to protect your property legally and effectively in 2026.

What Is Medicaid Estate Recovery?

Medicaid Estate Recovery is a program that allows state governments to recover the cost of long-term care benefits paid by Medicaid after the recipient’s death. Under federal law, every state is required to seek reimbursement for:

• Nursing home care
• Home and community-based services
• Hospital and prescription costs related to long-term care

The money is recovered from the estate of the deceased person — which includes their home if they owned one at the time of death.

Why Medicaid Targets Homes

The family home is often the most valuable asset in a person’s estate. If the home was not legally protected before the Medicaid recipient passed away, the state can file a claim or lien against it. In many cases, families must sell the home to settle the Medicaid debt.

This process is often unexpected and devastating, especially when the home was meant to be passed down to children or heirs.

Common Scenarios: Is Your Home at Risk?

Understanding your family’s situation can help you determine whether your home is at risk for Medicaid recovery. Here are some common examples:

Scenario 1: Single Person in Nursing Home

If the Medicaid recipient was single and owned a home, and no protected relatives live there, the home is likely subject to estate recovery after death.

Scenario 2: Married Couple, One Spouse in Nursing Home

If the Medicaid recipient has a surviving spouse, the state cannot recover from the estate until the spouse passes away. However, recovery may still occur later if no additional protections are in place.

Scenario 3: Disabled Child Lives in the Home

If a permanently disabled child lives in the home, the property may be exempt from estate recovery permanently.

Scenario 4: Caregiver Child Provided In-Home Support

If an adult child lived in the home for two years prior to the parent’s institutionalization and provided care, the home may be protected under the Caregiver Child Exemption.

What Is a Medicaid Lien?

A Medicaid lien is a legal claim against the home or estate. There are two main types:

Pre-Death Liens

Some states may place a lien during the Medicaid recipient’s lifetime if they are institutionalized with no expectation of returning home. However, if a spouse or disabled child lives in the home, this type of lien usually does not apply.

Post-Death Estate Claims

More commonly, Medicaid files a claim after the recipient dies as part of estate recovery. This process often occurs during probate, and the home may need to be sold unless proper legal protections were used in advance.

Who Is Protected From Medicaid Estate Recovery?

Federal and state Medicaid laws provide protections for certain individuals and situations.

Spousal Protections

A surviving spouse cannot be displaced from the home. Medicaid cannot recover until the spouse has passed away. Planning is still essential to prevent recovery later.

Minor or Disabled Children

If the deceased had a child under 21 or a disabled child (of any age) living in the home, the home may be exempt.

Caregiver Child Exemption

If an adult child provided care in the home for at least 2 years prior to institutionalization, the home may be exempt from Medicaid recovery. This requires documentation and proof of caregiving.

Common Misconceptions About Medicaid and Home Seizure

There are many misunderstandings about how Medicaid works when it comes to homes and inheritance. Here are some myths — and the facts:

Myth 1: “They can’t take the house if my name is on the deed.”

Fact: Medicaid looks at ownership and control. If the Medicaid recipient retained any ownership or benefit, the home may be included in the estate.

Myth 2: “We’re not rich — we don’t need to worry about this.”

Fact: Estate recovery affects many middle-class families, especially those who rely on Medicaid for nursing home care.

Myth 3: “Putting the house in my child’s name will protect it.”

Fact: If you transfer the home within five years of applying for Medicaid, it could trigger penalties. This is known as the five-year look-back rule.

How to Protect Your Home from Medicaid Estate Recovery

Fortunately, there are ways to legally protect your home — but these strategies must be implemented before you apply for Medicaid.

1. Use an Irrevocable Trust

A Medicaid Asset Protection Trust (MAPT) allows you to transfer your home into a trust where you no longer legally own it. If done at least five years before applying for Medicaid, the home can be fully protected from estate recovery.

2. Take Advantage of Exemptions

If you meet the criteria for a spousal, disabled child, or caregiver exemption, you may be able to protect the home. Legal documentation and timing are critical for these options.

3. Explore Deed-Based Strategies

Some states offer Transfer-on-Death (TOD) deeds or life estate deeds that allow your home to pass to a beneficiary automatically upon death — avoiding probate and potential estate recovery.

4. Consult a Medicaid Planning Attorney

Each state has different rules about estate recovery. A knowledgeable attorney can:

• Review your estate
• Set up legal protections
• Ensure you meet Medicaid’s financial requirements
• Avoid costly mistakes and penalties

Frequently Asked Questions

Can Medicaid take my house after I go into a nursing home?

Yes, Medicaid can recover costs from your estate after you pass away if you received long-term care benefits. This includes placing a claim against your home. However, your house may be protected while you’re alive — especially if a spouse, child under 21, or a disabled child lives there. Without planning, though, the state may attempt to recover the home after death.

What is Medicaid estate recovery?

Medicaid estate recovery is a legal process where the state seeks reimbursement from the estate of a deceased person who received Medicaid long-term care benefits. This can include filing claims against any assets, including a family home, that are part of the estate. It’s required under federal law for recipients aged 55 or older.

How do I stop Medicaid from putting a lien on my house?

The best way to stop Medicaid from placing a lien is to plan ahead using legal asset protection strategies, such as:

• Placing your home in an irrevocable Medicaid Asset Protection Trust (MAPT) at least five years before applying
• Transferring the home using a life estate deed or transfer-on-death deed (where allowed)
• Qualifying for a spousal or caregiver exemption

Working with a Medicaid planning attorney is critical to ensuring the right steps are taken at the right time.

Can Medicaid place a lien on my home while I’m alive?

In some cases, yes. If you’re permanently institutionalized in a nursing facility and not expected to return home, the state may place a pre-death lien on your home. However, if your spouse or a qualified family member lives in the home, Medicaid cannot place a lien while you’re alive.

What happens to the house after the Medicaid recipient dies?

If the house was not legally protected before death and is part of the estate, the state may file an estate recovery claim. This can lead to the forced sale of the home during probate to pay off the Medicaid debt — unless:

• A surviving spouse is still living in the home
• A disabled or minor child resides there
• The home was transferred into a trust or using exempt strategies

Real-World Example: How One Family Protected Their Home

Barbara, a 68-year-old widow, worked with an elder law attorney to place her home in an irrevocable trust. Five years later, she needed nursing home care and qualified for Medicaid.

Because the home was in the trust for more than five years, Medicaid could not count it as an asset and could not recover it after her death. Her children inherited the home, as planned, without legal conflict.

Why You Should Start Planning Now

Failing to plan for Medicaid recovery can result in:

• Loss of the family home
• Probate court complications
• Emotional and financial stress for heirs
• Delays in settling the estate

Medicaid planning isn’t just for the wealthy — it’s essential for anyone with a home who may need long-term care. The earlier you begin, the more options you’ll have to legally preserve your home and legacy.

Final Thoughts: You Don’t Have to Lose Your Home to Medicaid

Medicaid estate recovery is complex, and for many families, deeply personal. But the truth is, you have options.

By understanding the rules, identifying exemptions, and working with a qualified professional, you can:

• Protect your family’s home
• Avoid unnecessary legal battles
• Preserve your legacy for the next generation

Contact Angiuli & Gentile, LLP Today

The best way to protect your home is to work with a legal expert who understands your state’s Medicaid laws. An experienced Medicaid planning or elder law attorney can help you create a personalized plan that shields your assets — before it’s too late.

Don’t wait for a crisis. Protect your home and your family’s future. Contact a Medicaid planning attorney today.