Can Medicaid Claim an Inherited Home?

Quick Answer:
Medicaid doesn’t take the house itself, but a state may seek repayment for certain care costs from the person’s estate after death. This is called Medicaid estate recovery, and it most often applies to long term care for people 55 and older. There are important protections: recovery is generally delayed while a surviving spouse is living or when there’s a child under 21 or a child who is blind or disabled, and states offer hardship waivers.

If Medicaid helped pay for a parent’s care, you may have questions about the house. Before making plans to sell or transfer it, ask the estate attorney whether a recovery claim may apply.

What Is Medicaid Estate Recovery?

Federal law requires each state to seek repayment from the estates of some Medicaid recipients. It usually applies to costs for nursing home care, home and community based services, and related care for people 55 and older.

The state files a claim against the estate, much like any other creditor. It doesn’t take the house, but the claim may be paid from the estate, often from the sale of the home.

Which Property Is Included?

Every state recovers from property that goes through probate. Some states also include property that passes outside probate, such as homes held jointly or in some trusts. An elder law attorney can explain which rules apply in your state.

Protections for Families

Estate recovery is generally delayed or waived when:

A surviving spouse is living.
There’s a child under 21.
There’s a child of any age who is blind or disabled.

Many states also protect a home where a sibling or adult child lived and provided care under certain conditions, and every state offers a hardship waiver process.

What It Means for the House

If the state files a claim, the executor works with the state Medicaid agency and the estate attorney. Often, the house is sold, the claim is paid from the proceeds, and the remaining funds go to the heirs. Sometimes the claim is reduced or waived.

If a sale is needed, I can coordinate the property side with your attorney. See selling a house in probate.

Planning Ahead

If a parent is starting long term care, talk with an elder law attorney early. There are often planning options that protect the home for a spouse or family. If a parent is moving into care and you’re helping sell the home, see selling a house with power of attorney.

Frequently Asked Questions

Can Medicaid take my parents’ house while they’re alive?

Generally, no. Estate recovery happens after death, though some states may place a lien in certain long term care situations.

Does Medicaid estate recovery apply to a house in a trust?

It depends on the state and the type of trust. An elder law attorney can review it.

How will I know if there’s a Medicaid claim?

The state usually files a claim with the estate. The executor and attorney will see it during probate.

Can the family keep the house?

Sometimes, through a protection, waiver or by paying the claim. An attorney can explain the options.

If you would like to keep reading, I also cover inheriting a house with a mortgage, how to find a good probate attorney and taxes on inherited property.

About the Author

Jolene Baijot is a real estate agent and Designated Broker with more than 25 years of experience and over 1,000 transactions. She holds the Certified Probate Real Estate Specialist (CPRES) and Accredited Buyer’s Representative (ABR) designations and works alongside estate and elder law attorneys on the sale of family homes. Learn more about how Jolene helps with probate and trust sales.

Questions About the House?

Once you’ve spoken with your attorney, I’m happy to help you understand the home’s value and what a possible sale could look like. Feel free to reach out when the time feels right.

This post is general real estate information, not legal advice. An elder law attorney can advise you on Medicaid rules in your state.