If your parent’s spouse needs nursing home care, you may worry about losing the family home. New York Medicaid offers important protections for married couples, but they do not guarantee the home will always be safe from future claims.
How does New York Medicaid treat the home?
When one spouse moves to a nursing home, New York Medicaid generally does not count the marital home as an asset when reviewing the other spouse’s eligibility. Federal law also provides an exception to the home-equity limit when the applicant’s spouse lives in the home.
This protection applies regardless of which spouse owns the home, but it does not prevent every future claim or eliminate the risks of transferring ownership.
What protections exist for the spouse at home?
New York rules help protect some of a couple’s income and assets. The Community Spouse Resource Allowance (CSRA) lets the spouse at home keep a protected share of countable assets. The Minimum Monthly Maintenance Needs Allowance (MMMNA) may allow that spouse to receive part of the nursing home spouse’s income for everyday expenses.
The amounts depend on the couple’s finances and current state limits. Families can review New York’s spousal impoverishment rules or contact their local department of social services.
What happens to the home later?
New York generally does not pursue Medicaid estate recovery while the surviving spouse is alive. After the spouse’s death, the state may seek repayment unless an exception applies. The state’s Medicaid estate recovery guidance explains the process.
Giving away the home or selling it below market value can result in a Medicaid penalty. Exceptions may apply to transfers to:
- A spouse
- A child under 21
- A blind or disabled child
- A caregiver child who lived in the home for at least two years before the parent entered care and helped delay that move
- A sibling who meets specific requirements
Before changing the home’s ownership, review the rules and get legal advice.
What should your family do next?
The home may be protected during a spouse’s Medicaid application, but the outcome depends on your family’s situation. An elder law attorney can review eligibility, spousal allowances, transfer rules and estate recovery risks before you make decisions about the home.
