For many people, their home is not just a place to live—it's their most valuable asset. Whether it's a family heirloom or simply the result of years of hard work, the thought of losing it to Medicaid after death is understandably distressing. But with the right planning, you can ensure your home is passed on to your loved ones, not the government.
How Medicaid Can Claim Your Home
When you apply for Medicaid to help cover long-term care costs, the government will assess your assets to determine eligibility. Although your home is typically exempt as long as you live there, Medicaid may place a lien on it after your death if you’ve received Medicaid benefits. This means that upon your passing, Medicaid could seek repayment for the care it provided—potentially forcing your heirs to sell your home to cover the costs.
Protecting Your Home with Proper Planning
The good news is that there are steps you can take to protect your home from being seized by Medicaid. One of the most effective methods is to transfer ownership of your property before you apply for Medicaid benefits. However, this must be done strategically, keeping in mind Medicaid's five-year look-back rule.
Strategies to Keep Your Home in the Family
Create a Trust: One of the most common ways to protect your home is by placing it in an irrevocable trust. This ensures that the home is no longer considered part of your estate, but you still maintain control over it during your lifetime.
Life Estate: Another option is creating a life estate, where you retain the right to live in the home for the rest of your life, but ownership is transferred to your beneficiaries. This can help protect your home from Medicaid while ensuring it passes to the right people.
Other tools that can protect your property are tailored to your personal and family situation.
Plan Ahead to Ensure Your Wishes Are Honored
It's critical to start planning early to ensure that your home is passed down to your loved ones and not taken by Medicaid. We can help you explore the best strategies for your unique situation and protect your home.
By taking the proper steps now, you can safeguard your home for future generations, avoid costly Medicaid claims, and ensure your legacy lives on precisely as you intend.
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