Key Takeaways
- A primary residence is generally exempt from Medicaid’s asset limits if you live there or intend to return.
- New York sets the home equity limit at $1,130,000 for nursing facility and community-based long-term care.
- Non-primary residences and investment properties are treated differently and may count toward eligibility limits.
- Medicaid estate recovery may allow the state to seek repayment from a home after the recipient’s death.
- Irrevocable trusts and life estates are common tools used to help protect a home during Medicaid planning.
Owning a home does not automatically disqualify a New York resident from Medicaid coverage. Katzner Law Group works with families across New York who ask can you qualify for Medicaid if you own a house while planning for long-term care costs. The short answer is yes, in many situations, though eligibility depends on how the property is classified, who lives in it, and the applicable state and federal rules. Understanding how Medicaid treats a primary residence, when a house becomes a countable resource, and what estate planning tools may help protect that asset can make the difference between a secure plan and a costly surprise.
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Can You Own a Home and Still Qualify for Medicaid?
Yes, a New York resident can generally qualify for Medicaid while still owning a home. A primary residence is typically treated as an exempt asset, provided the applicant, a spouse, or another qualifying family member lives there, or the applicant intends to return to it. The home’s equity value must still fall below a state-specific cap. In New York, that figure is set at $1,130,000 for coverage of nursing facility services and community-based long-term care, a limit the New York State Department of Health updates periodically. This exemption gives families room to plan even after a health crisis begins.
When a Primary Residence May Be Considered an Exempt Asset
New York Medicaid rules generally treat a primary residence, known as a homestead, as an exempt resource as long as the applicant or a qualifying family member occupies it. A spouse, minor child, or a certified blind or disabled child living in the home preserves this exemption regardless of the property’s value. An applicant who has moved into a nursing facility but expresses intent to return home may also keep the exemption, even if returning home is not realistically expected. Because these rules are set at the state level, specific thresholds and conditions can vary by location.
When a House May Affect Medicaid Eligibility
Home ownership becomes more complicated once a property stops functioning as a primary residence. A vacation home, a rental property, or a house inherited from a relative is generally treated as a non-exempt resource, and its equity value counts toward the Medicaid resource limit. This is often where the question can you qualify for Medicaid if you own a house grows more complex, since excess equity above the state’s cap can affect eligibility even when the home remains occupied. Ownership structure matters too. A property held jointly, through a life estate, or inside certain trusts may be treated differently than one held solely in the applicant’s name, and each structure carries its own eligibility consequences.
Gabriel Katzner has a track record, along with a vast number of outstanding public reviews across platforms, of working hard on behalf of individuals who need assistance with comprehensive estate planning services.
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What Happens to Your Home After Medicaid Benefits Begin?
Qualifying for Medicaid while owning a home does not end the conversation about that property. New York operates a Medicaid estate recovery program that may allow the state to seek reimbursement for long-term care costs from a recipient’s estate after death. Whether recovery reaches the home often depends on whether the property passes through probate, who remains living there, and how the estate plan was structured before care became necessary. A home that was exempt during life is not automatically protected after death.
Estate Planning Strategies That May Help Protect Your Home
Several planning tools are commonly used to help protect a home from Medicaid’s asset rules and estate recovery, though none fit every family’s circumstances. An irrevocable trust can remove a home from countable resources and from the reach of estate recovery, provided the transfer occurs well before Medicaid becomes necessary.
A life estate arrangement allows an individual to retain the right to live in the home while transferring the remainder interest to others, which can limit exposure to recovery claims, but there can be negative tax implications such as a loss of the step-up in basis upon death. Other strategies, including certain transfers to a spouse or caretaker child, may also apply. Because these tools carry different tax, control, and timing tradeoffs, the right combination depends on individual goals.
Discuss Your Medicaid Planning Options With Katzner Law Group
Protecting a home while pursuing Medicaid eligibility takes careful timing and the right legal structure, not guesswork. Katzner Law Group helps New York families answer can you qualify for Medicaid if you own a house with confidence and build an estate plan designed around their specific goals. Call us at (855) 528-9637 today to schedule a consultation and start protecting what you have worked so hard for.
