In most states, the Medicaid agency will have a lien against the house to recover what it has paid for your mother’s care when it’s sold, whether now or after she passes away. If you sell the house, your mother will go off of Medicaid and you will have to spend down the proceeds at the private rate.

Does a living will protect my assets from Medicaid?

A revocable living trust will not protect your assets from a nursing home. This is because the assets in a revocable trust are still under the control of the owner. To shield your assets from the spend-down before you qualify for Medicaid, you will need to create an irrevocable trust.

Can you own a home and still qualify for Medicaid?

Medicaid is a joint federal and state program that helps people with limited income and few assets cover health care costs. But, can you own a home and still qualify for Medicaid? Can you own a car on Medicaid? What about a life insurance policy?

Can you protect your house from Medicaid by giving it to?

The answer is a definite maybe. There are some circumstances in which you can transfer your home to an adult child to keep it out of the clutches of Medicaid. However, there are better ways to protect this cherished asset, and at least a few very good reasons you may not want to transfer it to your children.

How does Medicaid pay for nursing home care?

Medicaid will often pay for nursing home care even for those who have assets that could be used to pay for care. This is possible because Medicaid does’t count assets such as a house or car (these are called noncountable assets ).

What happens when you sell your home for Medicaid?

It simply means that when your house is sold, the state will receive money from the sale for reimbursement of the cost of your Medicaid-funded care. If the home is sold while you are still alive, the proceeds from the sale will disqualify you from Medicaid until you have “spent down” the proceeds on your nursing home care.