“Can Medicaid Take My Home?” Checker
For many families, the biggest fear about Long-Term Care Medicaid is losing the family home. The short answer is that Medicaid usually does not take a home while the person who receives care is alive, and the home is often exempt for eligibility. But three separate rules can affect the home: the home exemption (whether the home counts as an asset), the home equity limit (a cap on how much equity a single applicant can have), and estate recovery (the state’s claim after death). This checker walks through each rule for your situation. Nothing you enter is stored or sent anywhere.
Figures change periodically. Double-check current amounts before relying on them.
The checker
Rule 1: Is the home exempt for eligibility?
For Long-Term Care Medicaid, the home is generally not counted as an asset if:
- the applicant lives in it; or
- the applicant is in a nursing home and intends to return home (in most states, a signed statement of intent is enough, and the person does not need to be likely to return; some states apply stricter rules after a period of time); or
- a spouse lives there; or
- a dependent relative lives there (rules on which relatives qualify vary by state).
If none of these apply, the home may become a countable asset. Some states allow the home to stay exempt while it is listed for sale in good faith. See Home exemption and Intent to return home.
Rule 2: The home equity limit
Federal law bars Long-Term Care Medicaid for an applicant whose equity in the home exceeds the state’s limit, unless a spouse, a child under 21 or a blind or disabled child lives in the home. In 2026, states choose a limit between $752,000 and $1,130,000. From January 1, 2028, no state may use a limit above $1,000,000, with some exceptions for farm property. Equity means the home’s value minus any mortgage or home equity loan. A reverse mortgage or home equity loan can reduce equity below the limit. See Home equity limits and Over the home equity limit.
Rule 3: Estate recovery
After a Medicaid recipient dies, the state must seek repayment from the estate for long-term care services received at age 55 or older (and may recover for other services). Key protections:
- No recovery while a surviving spouse is alive, or while there is a child under 21 or a blind or disabled child.
- Hardship waivers are available in every state.
- What counts as the “estate” varies. Some states recover only from property that goes through probate; others reach jointly owned property, life estates and other non-probate assets.
- Liens: some states place a lien on the home of a nursing home resident who cannot reasonably be expected to return home, with exceptions when certain relatives live there.
See Estate recovery and Estate recovery by state.
Transfers of the home that do not cause a penalty
Transferring the home during the look-back period usually causes a penalty, but federal law allows the home to be transferred without penalty to:
- a spouse;
- a child under 21;
- a blind or disabled child;
- a sibling who has an equity interest in the home and lived there for at least one year before the applicant entered a nursing home;
- a child who lived in the home for at least two years before the applicant entered a nursing home and provided care that allowed the parent to stay home (the caregiver child exemption).
See Child caregiver exemption and Exempt transfers.
Planning options families ask about
Depending on the state and the family’s goals, options that may protect a home include:
- an irrevocable trust created more than five years before applying (see Asset protection trusts);
- a Lady Bird (enhanced life estate) deed in the states that recognize it (see Lady Bird deeds);
- transfers to exempt family members, as above;
- keeping the home exempt with a statement of intent to return and planning for estate recovery;
- selling the home and using the proceeds in allowed ways (see Selling the home).
Each has trade-offs involving control, taxes, the look-back and estate recovery. None should be done without understanding the rules in your state.
Examples
A spouse at home. Frank enters a nursing home; his wife, June, lives in their $600,000 home. The home is exempt while June lives there, and the equity limit does not apply. After Frank’s death, no estate recovery is allowed while June is alive. Whether the state can later seek recovery from June’s estate for benefits Frank received depends on state rules.
A widow who intends to return. Ada, 90, lives in a nursing home and signs a statement that she intends to return home. Her home is exempt for eligibility in most states, if her equity is under the state’s limit. After her death, the state may seek recovery from the home if it is part of her estate, unless a hardship waiver or another exception applies.
A caregiver daughter. Beth lived with her father for three years and provided care that kept him at home. When he enters a nursing home, he transfers the home to Beth without a penalty, under the caregiver child exemption, after the family provides proof of the care.
Questions to discuss as a family
- Does the person hope to return home, and is that realistic?
- Who will live in the home, maintain it and pay taxes and insurance while the person is in care?
- Is there a mortgage, home equity loan or reverse mortgage?
- Has a child lived in the home and provided care for two years or more?
- Is the home in one name, jointly owned, or in a trust or life estate?
- What do the family’s wills or estate plans say about the home?
- Would selling the home and using the proceeds for care be better for everyone?
There is no single right answer. Some families prefer to keep the home exempt and accept a possible estate recovery claim later; others plan early to protect it; others sell. Knowing the rules helps the family choose deliberately.
Records to keep about the home
- The deed and any trust or life estate documents.
- A recent property tax assessment or appraisal, for the equity limit.
- Mortgage and loan statements.
- A signed statement of intent to return home, if applicable. See the printable intent-to-return statement.
- For the caregiver child exemption: proof that the child lived in the home (mail, ID, tax returns) and a doctor’s statement describing the care that delayed nursing home placement.
Limits of this checker
- It uses general federal rules; states differ.
- It does not decide whether a relative counts as “dependent.”
- It does not address trusts, life estates or joint ownership.
- It does not calculate estate recovery amounts.
Getting experienced help
Home planning is one of the areas where the rules differ most from state to state and the stakes are highest. A Certified Medicaid Planner, working with an attorney for any deed or trust, can explain the options in your state. As a rough guide, published fees for full planning range from about $2,500 to $15,000 or more and hourly help from about $150 to $600.
Frequently asked questions
Will Medicaid take my house while I’m alive? Generally no. Some states may place a lien in limited circumstances, but recovery happens after death.
Can I give my house to my children? Usually only with a penalty, unless an exemption applies. See Gifts.
What if I sell the house? The proceeds become countable. See What happens if I sell my house while on Medicaid?.
Does a second home count? Yes, generally, unless it is exempt for another reason.
Does the equity limit apply to a married couple? Not while the spouse lives in the home.
What if the house is jointly owned with a child? Only the applicant’s share is usually counted, but adding a child to the deed during the look-back can be a transfer. See Joint home ownership.
Related guides
Last updated for 2026. General information only, not legal or financial advice. Medicaid Answers is a free educational resource published by Medicaid Answers Foundation.