Your Home and Medicaid

“Will Medicaid take my house?” is one of the first questions families ask. The honest answer has two parts. While a person is alive and qualifying for Long-Term Care Medicaid, the home is usually protected. After death, it may be at risk through estate recovery. This guide gives the big picture and points to the detailed guides in this section.

Figures change periodically. Double-check current amounts before relying on them.

Part 1: The home and eligibility

The home is usually exempt

For eligibility, the home generally does not count toward the asset limit (often $2,000 in 2026) when:

• the applicant lives in it; or
• the applicant has moved to a nursing home but intends to return home; or
• the applicant’s spouse lives in it; or
• a dependent relative lives in it (rules vary by state).

See When the home is exempt and Intent to return home.

“Home” can include a house, condominium, mobile home or houseboat, plus the land it sits on and adjoining land.

The home equity limit

If no spouse, child under 21, or blind or disabled child lives in the home, the applicant’s equity interest must be under the state’s limit:

Equity means the home’s value minus any mortgage or loans against it, multiplied by the applicant’s ownership share. See Home equity limits by state.

Spending money on the home

Because the home is exempt, spending countable savings on it is usually allowed and is not a gift. Common examples:

• paying off the mortgage or a home equity loan;
• repairing the roof, furnace, windows or plumbing;
• making the home safer and more accessible (ramps, grab bars, a walk-in shower);
• paying property taxes and insurance.

These must be for the applicant’s (or couple’s) home, at fair value.

Transferring the home

Giving the home away, or adding someone to the deed, is a transfer that can cause a look-back penalty, unless an exemption applies. The home can be transferred without penalty to:

• a spouse;
• a child under 21;
• a blind or disabled child;
• a sibling who already has an ownership share and lived there at least a year before the applicant entered care;
• a child who lived there at least two years and provided care that kept the parent out of a nursing home. See Child caregiver exemption.

See Transfers that are allowed.

Selling the home

If the home is sold, the money from the sale is a countable asset (unless it is used to buy another exempt home). A sale while applying, or while on Medicaid, can affect eligibility. See Selling the home.

Part 2: The home after approval

Liens during life

Federal law allows states, in limited situations, to place a lien on the home of a person who is permanently in a nursing home and is not expected to return. A lien cannot be placed if the home is lived in by:

• the spouse;
• a child under 21, or a blind or disabled child;
• a sibling who has an ownership share and lived there at least a year before the person entered the nursing home.

Not every state uses these liens. If the person does return home, the lien must be removed.

Estate recovery after death

Every state must try to recover the cost of long-term care paid by Medicaid from the estate of a recipient who was 55 or older when the care was provided. The home is often the main asset in the estate.

Important protections:

• Recovery must wait while there is a surviving spouse, a child under 21, or a blind or disabled child.
• Hardship waivers are available.
• Some property passes outside the estate in states that limit recovery to the probate estate.

See Estate recovery, explained.

Part 3: Ways families plan for the home

These tools are described in general terms. Whether any of them fits depends on the state and the family’s situation.

• Exempt transfers to a spouse, a child under 21, a disabled child, a qualifying sibling or a caregiver child.
• Lady Bird (enhanced life estate) deeds, used in a small number of states to pass the home outside probate. See Lady Bird deeds.
• Irrevocable trusts, set up well before care is needed (subject to the look-back). See Medicaid asset protection trusts.
• Keeping the home for the spouse at home, who may later transfer it or plan their own estate.
• Selling the home and using the money for care, when that is the best fit.

Each choice has tax, legal and family effects. A deed or trust must be prepared by an attorney. Many families also work with a Certified Medicaid Planner (CMP) to see the whole picture first.

Worked example

Dorothy, a widow in Ohio, owns her home outright, worth $280,000. She moves to a nursing home and hopes to go home if her health improves.

• Eligibility: Her home is exempt because she intends to return, and her equity ($280,000) is below Ohio’s $752,000 limit.
• During her life: Ohio could consider a lien if it decides she cannot return home, unless a protected relative lives there.
• After her death: Ohio may seek recovery from her estate, which would include the home, unless a protected relative is living or a waiver applies.

If Dorothy’s daughter had lived with her for two years and provided care that kept her out of a nursing home, Dorothy could transfer the home to her daughter under the child caregiver exemption. The home would then not be part of Dorothy’s estate.

Common questions

Do I have to sell my home to get Medicaid? Usually not, if it is exempt.

Can Medicaid take my house while my spouse lives there? No. The home stays exempt while the spouse lives there, and estate recovery must wait until after the spouse’s death.

Should I give my house to my kids? Not without understanding the look-back, taxes and other risks. See Transfers that are allowed and Common financial mistakes.

A quick checklist for the home

• Who owns the home, and how is the deed titled?
• Does a spouse, child under 21, or blind or disabled child live there?
• Does the applicant intend to return home?
• What is the home worth, and how much is owed on it?
• Is the equity under the state’s limit?
• Does the state place liens on homes during life?
• How does the state define “estate” for recovery?
• Are there relatives who might qualify for an exempt transfer?

Answering these questions early gives the family time to make good choices, rather than rushed ones after a hospital discharge.

The home over time

The home’s status often changes over the course of care:

• At first, the person may be in rehab and expect to go home. The home is exempt.
• Later, the person may be in long-term care. The home can stay exempt with intent to return, but in some states a lien may be considered.
• If a spouse is at home, the home stays exempt and protected from recovery during the spouse’s life.
• After death, estate recovery may apply, subject to the protections described above.

Planning ahead, rather than reacting at each stage, usually gives the family the most choices. A {L} can help map out what happens at each stage in your state.

Common questions

Can my parent move in with me and keep their own home exempt? Possibly, if the parent intends to return to their own home. If not, the home may count as an asset once the parent moves out for good, so this should be reviewed before the move.

Does it matter whose name is on the deed? Yes. A home owned jointly with a child or another relative is treated differently from one owned only by the applicant. Changes to the deed during the look-back period can also be treated as gifts.

What about a mobile home? A mobile home that the person lives in is generally treated as the home, and any land it sits on can be part of the home exclusion.

Is a reverse mortgage a problem? A reverse mortgage reduces home equity, which can help with the equity limit. Loan money received is generally not income in the month received, but any amount kept into the next month can count as an asset.

Can I pay a relative to repair or maintain the home? Paying fair market value for real work, with a written agreement and receipts, is generally a purchase, not a gift.

Related guides

• When the home is exempt
• Home equity limits by state
• Intent to return home
• Estate recovery, explained
• Lady Bird deeds
• Child caregiver exemption

Last updated for 2026. General information only, not legal or financial advice. Medicaid Answers is a free educational resource published by Medicaid Answers Foundation.