The rules for whether Medicaid can take a jointly owned home are complicated and depend on the ownership in the home. If you are applying for Medicaid to pay for your nursing home care and your home is a significant asset that can be turned into cash to pay your bills, it may have to be sold. If a co-owner needs to move into a nursing home, Medicaid can offer help paying for that person’s long-term care but not necessarily help keep their home.
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When will Medicaid take a jointly owned home?
Medicaid is a government-funded health insurance program for low-income families and individuals. Medicaid’s website states that to qualify for the program, you must meet certain income and asset requirements, which can vary by state. Medicaid will take a jointly owned home as part of its calculation of an individual’s assets, but it will not take a jointly owned home if the other owner occupies it and is not on Medicaid.
Medicaid’s website states that to qualify for the program, you must meet certain income and asset requirements, which can vary by state. Medicaid will take a jointly owned home as part of its calculation of an individual’s assets, but it will not take a jointly owned home if the other owner occupies it and is not on Medicaid.
Can a spouse live in a home owned by Medicaid?
Medicaid rules also allow you to transfer your home to your spouse or another person without incurring a transfer penalty. When your spouse eventually dies, however, any equity left in the house will be counted toward his estate and will be used to pay off his medical expenses before being passed on to his survivors.
Can Medicaid Take a House with a Reverse Mortgage?
The short answer is yes, Medicaid can take a home with a reverse mortgage. The long answer is that the Medicaid lien could be paid off from the sale of the house when the last surviving homeowner passes away or moves out permanently. It’s also important to note that Medicaid liens are different from reverse mortgage liens.
Medicaid is a federal and state funded program that provides financial assistance for medical care. Although it is funded by both the federal government and your state government, each state has its own eligibility requirements for this program.
Can Medicaid Take a Home if I am on the Deed but not the Mortgage?
If your name is on the deed but not the mortgage, Medicaid cannot take your share of the home as long as you continue to pay your share of the mortgage. If you stop paying your share of the mortgage, then you may have to forfeit your share of the home.
You should consult with an elder law attorney to determine if you can transfer ownership of your share in the property and avoid a Medicaid lien. The Medicaid lien only attaches to that portion of equity that exceeds $552,000 in value (as of January 1, 2019). If the property is in a trust, this would not be an issue.
Your state may or may not make an exception in this situation
The federal government allows states to recover the costs of services provided through Medicaid from the estates of deceased beneficiaries. The rules vary by state, but in general, the government has the right to file a claim against your estate for the value of services received during your lifetime.
In some cases, you can keep your home, even if it is your only asset. In order to qualify for Medicaid, you have to meet a restrictive income limit and have very few assets. Many states make an exception in this case, allowing you to keep your house and all its equity even though you are technically over asset limits.
This depends on your income, assets, and expenses
Your income, assets and expenses all play a role in the Medicaid application process. Any assets (including real estate) that you own and that have cash value are considered by Medicaid to be available to you for your care.If you’re applying for Medicaid, Medicaid will review the home as an asset when determining your eligibility for benefits. The good news is that there are ways to deal with the home so you don’t have to lose it.
If your spouse has moved out of the house, however, or if you’re single, the house will count toward asset eligibility limits.If your spouse isn’t on title but lives in the house and receives a percentage of its ownership under state law, then it’s probably not considered an exempt asset. For example, if one spouse owns a property outright but lives in it with his or her partner who receives 50% of its value upon death under state law, then the property is likely not exempt. Talk to a local elder law attorney about whether this situation.
Conclusion
In general, you can keep a home that is owned by you and your spouse where you live. If one of you receives Medicaid long-term care benefits and the other owns the house, the rules to protect your home do not apply. Your home will be part of the estate of the person who receives the long-term medical assistance. This is true even if both you and your spouse contributed money toward the purchase and upkeep of the house.