One of the most common fears we hear from clients is: “Will the State take my house if I go into a nursing home and receive Medicaid?”
The answer is: it depends — but proper planning can make all the difference.
Under Michigan Medicaid rules, your home is often considered an exempt asset while you are living and applying for Medicaid benefits. In many cases, a person may still qualify for Medicaid while owning their residence. However, after the Medicaid recipient passes away, the State of Michigan may pursue what is known as Estate Recovery to seek reimbursement for certain Medicaid benefits paid during the recipient’s lifetime.
Importantly, this does not mean the State automatically “takes” the home. Estate recovery claims are subject to numerous rules, exemptions, hardship protections, and planning opportunities. Certain transfers, Lady Bird Deeds, irrevocable trusts, and other planning techniques may help preserve the home for loved ones while still allowing the individual to qualify for benefits.
Every situation is different. Factors such as:
- marital status,
- ownership structure,
- when planning was completed,
- long-term care needs,
- and whether disabled or dependent family members are involved
can dramatically affect the outcome.
Unfortunately, many families wait until a crisis occurs before seeking guidance. By then, planning options may be more limited.
The good news is that proactive Medicaid planning can often protect significant assets while ensuring access to needed care.
If you or a loved one have questions regarding Medicaid eligibility, nursing home concerns, or protecting the family home, contact The Woods Law Office PLLC to discuss your options before a crisis occurs.
