QUESTION: If I need to enter a Nursing Home and apply for Medicaid, will the Nursing Home or Government take my home?
Short Answer: Strictly speaking neither the Nursing Home nor the Government will take a Medicaid recipient’s home, but beware as this is not entirely accurate.
Explanation: The Medicaid program has a set of rules governing a Medicaid recipient’s home located within BEM 400. As long as the home fits within those rules, the Medicaid recipient may keep the home while receiving Medicaid benefits.
Caution: Beware of Michigan’ Estate Recovery program. While a Medicaid recipient may keep their home during their lifetime, the equity in the home may still be at risk. The Estate Recovery program was implemented by the State of Michigan and designed to recover the assets of a Medicaid recipient for purposes of paying back the State for costs related to the Medicaid recipient’s care. If a Medicaid recipient dies and their home passes through the Probate process, the State of Michigan is at liberty to place a lien on the home equal to the total costs expended for the Medicaid recipient. This means that even though the home was protected during the Medicaid recipient’s lifetime, the children may not receive some or all of the equity value in the home. Before engaging in Medicaid planning, one should always consult with an experienced Elder Law Attorney who focuses on this type of law.
Please note that the above question is intended for education and informational purposes only and not intended as legal advice. Every situation is vastly different and thus the need for one-on-one legal advice from an experienced attorney. Every reader of this article is encouraged to seek out an experienced attorney to advise on their specific circumstances.