Justin, I’m worried that if I go to a nursing home, Medicaid will take my house. Is that what happens? — George
George, That’s a very common worry. Medicaid doesn’t take your house while you’re alive, but there is something called estate recovery after death.
If you receive Medicaid benefits for long-term care, Medicaid can place a lien against your estate after you die to recover the money spent. Your home is usually your biggest asset that may remain at the time of death, so it is often the asset at highest risk.
However, there are planning tools to protect it. In Arkansas, a beneficiary deed can transfer your home directly to your heirs at death, avoiding probate and Medicaid estate recovery, if used properly. Even better, use of a beneficiary deed does not create a transfer penalty, which would make it difficult to get benefits when needed.
Every family’s situation is different, so it’s important to get advice before taking action. We help families protect their homes every day.
Visit ElrodFirm.com to learn more, send us a message, or request a no-charge strategy session.