• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Potter Law Firm

North Carolina and Kentucky Estate Planning Attorneys

phone iconNC (704) 944-3245
KY (606) 324-5516
Attend A Free Seminar - KY Attend A Free Webinar - NC/SC THIS IS AN ADVERTISEMENT

  • Home
  • About Us
    • About Our Firm
    • Attorney and Staff Profiles
  • Practice Areas
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • Pet Planning
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Nursing Home Planning
    • Veterans Benefits
  • Communities We Serve
    • Kentucky
      • Boyd County
        • Ashland
        • Florence
      • Kenton County
        • Covington
        • Fort Mitchell
        • Independence
    • North Carolina
      • Mecklenburg County
        • Charlotte
        • Davidson
        • Huntersville
  • Resources
    • Definitions
    • DocuBank
    • Elder Law
      • Elder Law Links
      • Elder Law Reports
      • Local Elder Law Resources
        • Ashland Elder Resources
        • Covington Senior Resources
        • Huntersville Elder Law Resources
        • Independence Senior Resources
    • Elder Law Reports
    • Emergency Legal Documents
    • Free Estate Planning Seminars
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • IRA & Retirement Planning
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Pet Planning
      • Trust Administration & Probate
    • Is Your Estate Plan Outdated?
    • Kentucky Probate Resources
      • Ashland, Kentucky Probate Resources
    • Newsletters
    • North Carolina Probate Resources
      • Huntersville, NC Probate Resources
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Elder Law Reports
      • Estate Planning for Niches
      • Trust Administration
  • Contact Us
  • BLOG
Home » Elder Law » Can I Qualify for Medicaid as a Homeowner?

Can I Qualify for Medicaid as a Homeowner?

April 17, 2019 by John Potter

medicaidIf you are going to qualify for Medicare when you reach the age of 65, you may feel as though Medicaid is not relevant to you. After all, you have planned for retirement, you expect to have savings and income, and you own your own home. Medicaid is a program that is only available to people with virtually no financial resources, right?

This is true, but Charlotte elder law attorneys counsel many people about a key Medicaid benefit. The reason why a significant percentage of seniors ultimately seek Medicaid eligibility is because the program will pay for a stay in a nursing home. Medicare will not help.

Nursing homes are very expensive by any barometer. Here in our area, the median annual charge for a private room was over $92,500 in 2018, and a 4% per year increase is anticipated over the next five years.

Medicaid Home Ownership Rules

Since Medicaid is intended for people that presumably cannot afford to pay for health care insurance on their own, the asset limit is just $2000. This can naturally lead you to believe that you will never be able to qualify if you own residential property. On this score, we have some good news to pass along.

According to Medicaid regulations, your home is not considered to be a countable asset. However, there is an equity limit. It is adjusted slightly on an ongoing basis to account for inflation, but right now in North Carolina it is $585,000.

Unfortunately, you are not quite in the clear if you retain the home with the intent to pass it on to your heirs after your death.  If you were enrolled in the Medicaid program as a nursing home resident, the law requires Medicaid to seek reimbursement from your estate during the probate process.  There are a few different exceptions to this rule, though.

A healthy spouse has some property rights under Medicaid rules when a married person is applying for Medicaid to pay for a stay in a nursing home. In Medicaid lingo, the healthy spouse is called the “community spouse.” If the community spouse is remaining in the home, Medicaid will not enforce the equity limit in determining eligibility.

There is also a five-your Medicaid look-back period in place to prevent people from giving away assets to qualify for Medicaid shortly after they realize they need nursing home care. However, this does not apply to the transfer of your home to your spouse.  You could transfer sole ownership of the home to your spouse without incurring any penalties. Under these circumstances, you would not own a home at the time of your passing if you do predecease your spouse. As a result, the Medicaid program would not be able to go after the home.

Another exception involves transferring ownership of the home to someone who qualifies as a caregiver child under the rules. If you have a child that has lived in the home with you for at least two years acting as a primary caregiver, ownership of the home could be transferred to the child even within the five-year look-back period. For this exception to be available, the child would have to prove that the level of care that was being provided prevented you from entering a nursing home.

In some circumstances, a home could also be transferred to a blind or disabled child without violating the 60 month look-back provision.  Plus, if there is a sibling that has an equity interest in the home, and that individual has lived in the house during the year that preceded entry into a nursing home, your interest in the property could be transferred to your sibling without penalty.

These transfers have all kinds of potential ramifications for taxes and family relationships (and Medicaid ramifications if not handled properly) so it is highly advisable to seek counsel from an elder law attorney before trying any of these.  State law may provide other options as well, depending on the state.

Attend a Free Seminar!

To learn more about Medicaid planning and other important elder law and estate planning topics, attend one of our upcoming seminars. The sessions are offered completely free of charge, but we do ask that you register in advance so we can reserve your seat. To do just that, visit our seminar schedule page and follow the simple instructions to register for the session that works for you.

  • Author
  • Recent Posts
John Potter
Latest posts by John Potter (see all)
  • What You Need to Know about the Medicaid Look-Back Rule - January 3, 2023
  • How to Pass Down Your Legacy in Your Estate Plan - October 3, 2022
  • Practical Steps to Take after Receiving a Terminal Diagnosis - September 30, 2022

Filed Under: Elder Law Tagged With: Elder Law, Medicaid Planning

Other Articles You May Find Useful

Medicaid estate recovery
Advocacy Groups Call for the Eradication of the Medicaid Estate Recovery Mandate
Medicare Part B premiums
An Overview of 2022 Medicare Cost Increases
elder financial abuse
Elder Financial Abuse Is a Looming Threat
Veterans Pension
This VA Benefit Can Give Seniors a Boost
long-term care planning
Will Medicare Cover Living Assistance?
nursing home asset protection Medicaid planning
Longevity Statistics Shed Light on Nursing Home Asset Protection

Free Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
Texting Permission

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Subscribe to Our Blog

  • This field is for validation purposes and should be left unchanged.

Testimonials

default image

Overall The Potter Firm was very professional. They took what could of been a very complicated process and were able to break it down so it was a lot easier to understand. We are confident we now have made the right decisions in our estate planning. Good firm to work with.

DKS & KMS Client Review August 28, 2020

default image

John Potter has been a real pleasure to work with. He is very knowledgeable and explains things in a very simplistic manner so the average person can understand how/why the laws are written. He is very attentive and asks questions in such a way that not only helps him understand your goals, but also helps you think about what type of goals and expectations you should be considering. Exemplary client service.

David J. Client Review August 28, 2020

default image

My husband and I selected Ms. Potter to assist with our small business. She responsive and attentive every time I have a question or need assistance, and is extremely knowledgeable and able to answer any legal question I have had. I know I can count on Ms. Potter for all of my business legal needs and I would highly recommend her to anyone needing legal assistance with such.

Jillian Client Review August 28, 2020

<< Prev
Next >>

Where We Are

Ashland

ASHLAND
1620 Carter Avenue
Ashland, KY 41101-7631
Phone: (606) 324-5516
Fax: (606) 324-4766

Charlotte

CHARLOTTE
15720 Brixham Hill Avenue
Suite 300,
Charlotte, NC 28277
Phone: (704) 944-3245

Huntersville

HUNTERSVILLE
11330 Vanstory Drive
Huntersville, NC 28078
Phone: (704) 944-3245

Northern Kentucky

NORTHERN KENTUCKY
7310 Turfway Road
Suite 550,
Florence, KY 41042
Phone: (859) 372-6655

Office Hours

Monday8:30 AM - 4:30 PM
Tuesday8:30 AM - 4:30 PM
Wednesday8:30 AM - 4:30 PM
Thursday8:30 AM - 4:30 PM
Friday8:30 AM - 3:00 PM

Map/Location

potter_sidbr_map
potter law logo
  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Privacy Policy | Terms of Service | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc. THIS IS AN ADVERTISEMENT