When faced with the need for long-term care in a nursing home, many fear losing their home to the exorbitant costs of such care.
An individual can qualify for Medicaid coverage for long-term care while owning a home in his or her own name; however, MassHealth (the State Medicaid agency) is usually entitled to receive reimbursement after the Medicaid recipient’s death.
Options exist to protect the home and other assets if proper planning is done at least five years prior to applying for MassHealth. In limited circumstances, even without advance planning, the home may be transferred to specific individuals without penalty.
The MassHealth regulations permit the nursing home resident to transfer his or her home that is used as a principal residence to the following individuals:
- A spouse
- A child who is under 21 years old, or who is blind or totally disabled
- A “caretaker child” who MassHealth determines has lived in the parent’s home for at least two years immediately prior to the parent’s admission to a nursing home and because of the care provided, enabled the parent to remain at home rather than in a nursing home.
- A sibling who has a legal interest in the home and was living there for at least one year immediately before the nursing home resident was admitted to the nursing home
An experienced elder law attorney can guide you with long-term care planning advice specific to your own situation.