Can Medicaid Take Your House?
Learn how Medicaid estate recovery can impact your home and discover strategies to protect your assets with the help of Wood Law Group.
Understanding Medicaid Estate Recovery
Medicaid is a valuable resource for individuals with disabilities and older adults who require long-term or nursing home care, allowing them to access vital services without having to cover the expenses out of pocket.
Even though Medicaid is a means-tested program (eligibility is based on the individual’s income and assets), homes are typically exempt when determining eligibility. However, Medicaid agencies are legally allowed to recover the cost of care from a beneficiary’s estate after they pass away, or in some cases, if they no longer need the home while they’re alive.
As a result, many Medicaid beneficiaries, especially homeowners, often have concerns about whether Medicaid can take their houses during such recovery. The answer to this question depends on the specific circumstances. In many cases, a beneficiary can retain their home during their lifetime, but after death, Medicaid may seek to recover the cost of care from the home’s value.
Fortunately, there are protections for spouses and other dependents that could prevent the home from being taken while it is still in use or at all, even after the original homeowner/Medicaid beneficiary’s death. However, it is important to understand the rules on Medicaid estate recovery if you wish to preserve your assets for your heirs.
Our team at Wood Law Group is skilled in estate and Medicaid planning and can help you understand how to protect your assets from future Medicaid recovery. Read on as we explain the rules governing Medicaid estate recovery in Nevada and share insights into steps you can take to preserve your assets.
How Medicaid Estate Recovery Works In Nevada
Nevada’s Medicaid Estate Recovery program seeks reimbursement for Medicaid services provided to specific beneficiaries. This process applies to recipients who are 55 or older or inpatients of medical facilities who cannot reasonably be expected to return home.
The program aims to recover costs for various Medicaid-funded services, such as
- Home and community-based services
- Nursing facility care
- Hospital stays
- Physician visits
- Prescription drugs.
The types of assets that can be recovered following a Medicaid estate claim include:
- Cash contained in checking and savings accounts
- Cash contained in safe deposit boxes
- Savings bonds
- Stocks
- Annuities
- The remaining assets in a first-party special needs trust
- Any personal property of value, including mobile and manufactured homes, that has not been converted to real property.
If the Medicaid recipient dies leaving a home behind, the Medicaid agency may also place a lien on the home to recover the amount claimed. However, Medicaid will not usually seize the home as it would other types of property. Once the lien is placed on the home, nothing happens until the property is sold, after which Medicaid will recover the outstanding amount from the proceeds of the sale.
Exemptions to Recovery
There are certain exemptions to recovery. Medicaid in Nevada will typically not initiate recovery if the deceased Medicaid recipient has
- A surviving spouse
- A surviving child under 21
- A surviving child who is blind or suffering from any disability.
When these exemptions exist, Medicaid recovery is deferred and will only be initiated if they cease to exist.
Strategies To Protect Your Home for Your Non-exempt Beneficiaries
If your loved ones do not qualify for any of the exemptions, you might be wondering how to preserve your home for their use.
Generally, Medicaid estate recovery in Nevada for a home is deferred if any family member wishes to live on the property regardless of their status. In such cases, recovery will be initiated only if the deceased’s name is removed from the property. This rule could buy your loved ones some time if they currently live in your home.
Your family members could also apply for a hardship waiver to stop recovery. Our Medicaid planning and elder law attorney can explain how the waiver process works and offer guidance toward obtaining approval.
On your part, there are steps you could take immediately to ensure that your loved ones do not lose your home after you pass. With proper estate planning, you can protect your assets for your heirs using strategies such as joint ownership, irrevocable trusts, or life estates. These strategies transfer ownership of assets in a way that can help them fall outside the reach of Medicaid. However, these tools must be used carefully and under the guidance of professionals to ensure they are legally sound and effective.
Starting the Medicaid planning process well in advance of needing care ensures that you have the maximum protection for your assets. Early planning gives you the flexibility to use more comprehensive asset protection strategies. Nevada also has a 60-month look-back period for asset transfers made by Medicaid beneficiaries. Transferring your assets within that time before you apply for Medicaid could lead to disqualification from Medicaid benefits. This means that you must consider planning your estate long before you even need Medicaid.
How Wood Law Group Can Help
At Wood Law Group, we have extensive experience in helping clients navigate the complexities of federal and state Medicaid rules and protect their assets.
Our team is well-versed in Medicaid planning strategies, estate recovery laws, and the tools available to safeguard your home and other valuables. Whether you’re just beginning to consider your options or are concerned about last-minute planning, we can provide guidance and clarity and help you make informed decisions as you seek to preserve your home and estate for your loved ones.
If you’re ready to explore how to protect your home and other assets while preserving your Medicaid eligibility, contact us to schedule a one-on-one consultation. Let us help you understand your options, identify the best strategies for your specific needs, and create a tailored plan that protects your assets and provides peace of mind.
Contact Us
Understanding how Medicaid estate recovery rules work is crucial for anyone seeking long-term care, especially if you want to protect your home for your heirs. Without proper planning, Medicaid can recover the cost of care from your estate after you pass away. Early planning is, therefore, essential to ensure your home and other assets are shielded from recovery efforts, allowing you to pass them on to your loved ones.
At Wood Law Group, we offer the essential guidance and support you need to navigate Medicaid rules and protect your estate. We understand that navigating Medicaid estate recovery can be complex and overwhelming, and we’re here to help you protect your home and assets.
Take the first step towards safeguarding your assets. Contact Wood Law Group today, and let us put our knowledge and skills to work for you.
