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Right now they allow me to live in the house as long as he is alive.

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Each State administers its Medicaid program uniquely but under overall federal guidelines. And under Fed guidelines - due to Bush era Deficit Reduction Act of 2005 - an attempt for estate recovery/ recoup now has to be made; but how it is done is left up to each State. For estate recovery, aka MERP, what your States has for probate and property / real estate laws is really important. Some States allow for TEFRA proactively and others don’t. Some allow for Lady Bird Deed, others don’t. Some do a lien, others do a claim. It’s all different legal paths interdependent on your States laws and administrative codes. It’s not just what Medicaid does that comes into play.
Also imo it will make a difference if your State does estate recovery by Medicaid staff in house or has an outside contractor for MERP.

My experience based on being on this site a long time is that even if the elder - solo or married - really wants to hang onto their old home, most families are so beyond over dealing with the house, that in short order, it gets sold within first 6-9 months, even if there would have been exemptions or exclusions to MERP. It gets sold and the well spouse - if there is one - moved into a family members home and the other off into a facility. The # of CS who actually remain in their home is pretty small & tends to be either a May/Dec marriage or a husband who stays in the home as it’s his wife who gets way early dementia (at least 3 of these menfolk on this site). And what seems to happen after death of the NH spouse, is State really isn’t going to take the time needed to do the follow through which could be years if not decades on CS property tracking if challenged.

So most of the time States do not attempt any recovery if the CS wants to sell the house, use all proceeds of the sale and buy another. The LTC Medicaid NH room&board custodial care debt of the now deceased spouse was not securitized debt; it was not a mortgage or a HELOC that was a contract that used the house as collateral for the debt. It was a debt of the deceased. So the State has no securitized interest on the property so cannot keep the CS from “free movement” to buy another home if the CS so chooses.

JD, if selling and getting something new is on your radar, you need to get probate and a real estate attorney to deal with this for you. It’s not really an elder law attorney issue anyone as the elder is deceased. Although you’d want the elder law atty to update your own legal. It’s more property/ real estate contract law territory. Absolutely not an DIY. Most Realtors aren’t familiar with MERP. But the Title companies should be. Good luck!
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AlvaDeer Feb 2024
Igloo, It was always my understanding that Medicaid will not attempt to recover on a home co-owned by the spouse while the living spouse is still living. Am I wrong in that? If so, WOW, just WOW. They will bankrupt you for the marriage down to 100,000 in assets and then take your home while you are living in it? YIKES!
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I don't know if this house is in your name, if you are on title of it, but you as spouse are a community property spouse in all likelihood. Others here are correct.

I would say since you do have a home, an asset to protect, you see an attorney after you receive any communication from Medicaid regarding recover of costs or liens. This will give you good baseline information and protection.

Good luck to you.
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Medicaid never takes your house. The surviving spouse lives in the house until they either pass away or sell the home. At that time, but not before, Medicaid can recoup from the profits of selling the home, the money that was spent by the agency on the care of the person who used Medicaid. Medicaid isn’t the big bad wolf. They are a governmental agency designed to pay for care for those who cannot afford it, and when there are funds, such as a home sale, to recoup that taxpayer money, it’s appropriate that they attempt to recoup at least a portion of what was spent. Please know you’re free to live in and enjoy your home without worry that anyone is swooping in and taking it from you
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If you are married isn't the house yours when he passes? If not that is awful. My spouse and I own the home together so I it's never crossed my mind Medicaid could take it. I am interested to see what others post
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Ariadnee Feb 2024
I've been advised to put the house in my name. Will be doing that in the coming months as advised by the elder laywer we use.
Each state is different. Check with an elder lawyer specialist.
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