Q: My mother owns her home and is getting older. We are starting to think about long-term care. If she needs Medicaid in the future, will she have to sell her house? What happens to it?
A: No, your mother will not necessarily have to sell her home in order to qualify for Medicaid. In New York, a primary residence with an equity value of less than $1.13 million (in 2026) is considered an exempt asset for Medicaid eligibility purposes, but that does not mean you do not have to plan to protect the house.
If your mother is living in the home, it is not counted as an available asset. Even if she moves into a nursing facility, the home may still be exempt if a spouse or other qualifying family member, such as a disabled child, continues to reside there.
However, the more significant concern for many families is what happens after death. While Medicaid will not typically require the sale of the home during your mother’s lifetime, New York has an estate recovery program that allows clawback from assets that pass through the probate estate. This means that after her passing, the state may seek reimbursement for the cost of care provided if there are assets in your mother’s sole name with no beneficiary. If the deed is in her sole name, it will be subject to a claim. For this reason, it is important to plan in advance.
One of the most common planning strategies is transferring the home into a Medicaid Asset Protection Trust. When done properly, the home can be protected from both Medicaid eligibility rules and estate recovery, while still allowing your mother to retain the right to occupy the property during her lifetime.
There are other options as well, such as transferring the home with a retained life estate. This allows your mother to transfer ownership of the property while keeping the legal right to occupy and use the home for the rest of her life, even if she later requires nursing home care. Upon her passing, the property would pass directly to the named remainder beneficiary without going through probate.
However, this type of planning must be handled carefully. The remainder beneficiary receives a present ownership interest in the property, so any future sale would require the consent of your mother and the remainder beneficiary(ies). If that beneficiary predeceases your mother, their interest may pass according to their own estate plan or to their heirs, which may not be your mother’s intended outcome.
While there is currently no look-back period for Medicaid for community-based services, there is a 60-month look-back associated with an application for nursing services. Any planning that involves the transfer of assets must be completed at least five years before applying for nursing home Medicaid. Timing is critical, and improper planning can limit options and delay eligibility.
Alma Muharemovic, Esq., is an associate attorney at Burner Prudenti Law, P.C., focusing her practice on estate planning. Britt Burner, Esq., is the Managing Partner at Burner Prudenti Law, P.C., focusing her practice on estate planning and elder law. Burner Prudenti Law, P.C. serves clients from New York City to the East End of Long Island, with offices located in East Setauket, Westhampton Beach, Manhattan, and East Hampton.