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Medicaid Myth Series: Can Medicaid Take My House

Post Series: Medicaid Myths
  • 1.Medicaid Myth Series: Can Medicaid Take My House

Medicaid Myth House

Life Care planning includes planning for your house

Medicaid myth house

There is a lot of misinformation about what it means to qualify for Medicaid for skilled-nursing care. One of the myths is that the government will take your house. Like most myths, there is a small bit of truth inside. Let’s look at facts. 

You can qualify for Medicaid by having less than $2,000, a house, and car. You are allowed to keep your house and still qualify for Medicaid. If your spouse does not need Medicaid then you can protect a larger amount of money, and still keep the house and cars. So long as you and your spouse are alive, Medicaid will not take any action relating to your house. However, the house expenses are not taking into consideration if your spouse is no longer alive. This often creates a bit of a conundrum. You can keep the house, but there is no money to pay taxes and utilities. Nevertheless, there is nothing that the government is forcing you to do. 

After the death, Medicaid (or more specifically in Michigan the Department of Health and Human Services) will send a form to fill out that requests information. If your home is passing through Probate Medicaid has the right to put a lien on the house for the amount of services that were provided by Medicaid. It is easy for this amount to be substantial. If the home is probated, it is conceivable that after the house is sold most of the proceeds would go to pay back Medicaid. 

So, does Medicaid take your house – NO, but they can put a lien against the home for the value of the services provided. 

There are alternatives and with proper planning, the estate recovery as it exists today can be avoided. Call us at Dafoe Law, PLLC to help with this or any other Elder Law issue. 

Dafoe Law, PLLC is a Life Care Planning law firm serving the Estate Planning, long-term care, probate, and trust administration needs of clients in Saginaw, Bay, Genesee, Huron and Tuscola Counties. Dafoe Law serves Frankenmuth, Bridgeport, Birch Run, Reese, Millington, Clio, Vassar, Saginaw, Saginaw Township, Freeland, Thomas Township, Spaulding Township, Burt, Bay City, Essexville, Munger, Kochville Township, Caro, Cass City, Sebewaing, Unionville, Pigeon, Bad Axe. Travis I. Dafoe is a member of the National Academy of Elder Law Attorney and WealthCounsel. Dafoe Law, PLLC is also a member of the Life Care Planning Law Firm Association. Medicaid Myth House

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Travis Dafoe Elder Law Attorney

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