To qualify for Medicaid long-term care coverage, you need to have limited resources and income, even though the costs of long-term care are high. Many people wonder whether they can transfer a house to a child and if Medicaid in New York will still approve their long-term care coverage application. In short, you can, but only if you complete the transfer within Medicaid’s rules.
With the right planning and guidance, you can navigate the complex world of Medicaid eligibility. At the Law Office of Andrew M. Lamkin, P.C., we help individuals across New York protect what matters most, including the family home. Our firm focuses on Medicaid planning, which means we work with you to organize your finances and assets so you can qualify for Medicaid while preserving as much of your property as possible.
How Does Medicaid Long-Term Care Coverage Work in New York?
Medicaid is a government program that provides healthcare for low-income individuals. The program helps pay for long-term care, including nursing home care and in-home services. To qualify, you cannot own more than a specific amount in assets or earn more than a specific amount in monthly income. In New York, the government applies stricter rules when you apply for nursing home Medicaid than community Medicaid.
Countable vs. Non-Countable Assets
Medicaid separates your property into two categories: assets that count toward eligibility and those that do not. Countable assets include:
- Money in bank accounts,
- Investments, and
- Real estate beyond your primary home.
If you own countable assets, the government adds them together to determine whether you have met or exceeded the Medicaid resource limit.
Non-countable assets are property that Medicaid does not count when determining eligibility. Your primary residence may fall into this category if you live there, plan to return, or if a spouse or certain relatives continue living in the property. Yet, if you complete a full transfer of the property, it may become a countable asset as it is no longer your primary residence.
The Lookback Period
In New York, only nursing home Medicaid has a lookback period, which is the five years immediately preceding the date when you apply for coverage. If, during those five years, you gave away property for less than fair market value, the government adds the value of that property to the countable assets you currently own to determine whether you qualify for coverage. In other words, transferring a home to a child without receiving full payment can violate the Medicaid lookback New York home transfer rules if you make the transfer within the five years before you apply for nursing home Medicaid.
If you have too many assets to qualify for Medicaid once the government adds in transfers from the lookback period, it imposes a penalty period. During that penalty period, Medicaid will not pay for your care, even if you otherwise qualify. The length of the Medicaid penalty period for a home transfer varies depending on the amount above Medicaid’s limits that you transferred.
Resource and Income Limits
Medicaid sets strict limits on how many countable assets you can own. As of 2026, you cannot own more than $33,038 worth of assets and still qualify for coverage. If you own a home, up to $1,130,000 of your equity in that home is also non-countable.
You only qualify for Medicaid long-term care benefits if you have limited income, too. Typically, you cannot earn more than $1,836 per month and still qualify for Medicaid.
Medicaid’s rules apply differently depending on whether one or both spouses apply for coverage. If only one spouse applies, Medicaid allows the spouse who continues to live in the community to retain up to $162,660. If both spouses apply, they must jointly earn no more than $2,489 and own no more than $44,796.
How Can I Protect a Home from the Medicaid Lookback Rules?
When gifting a house to a child, Medicaid rules often inform the timing and the structure of the transfer. The right strategy for protecting a home from the lookback rules depends on your health, timeline, and financial situation.
Irrevocable Trust Medicaid Planning NY
One of the most effective tools for protecting your home is an irrevocable trust called a Medicaid Asset Protection Trust (MAPT). An irrevocable trust is a legal arrangement where you transfer asset ownership to a separate entity that you cannot easily change or revoke.
By placing your home into the trust, you remove it from your direct ownership. After five years, Medicaid generally protects the home from penalties, and you can often keep the right to live in the home for the rest of your life. Using an irrevocable trust as a Medicaid planning strategy requires careful legal drafting and timing of transfers.
Caregiver Child Exception
Medicaid allows you to transfer your home to a caregiver child in more circumstances than to a non-caregiver child. Specifically, when a child has provided care that allowed you to remain at home longer, transferring your home to that child may not count against your countable asset limit.
For the exception to apply, the child must have lived in your home for at least two years before you entered a nursing home, and their care must have delayed your need for institutional care. You must provide documentation, such as medical records and proof of caregiving.
Sibling with Equity Interest Exception
Another exception may apply when a sibling already owns part of the home. If you transfer the property to your sibling after they have lived in the home for at least one year, the transfer may be exempt from your countable assets if it meets Medicaid’s strict requirements. The sibling must already own a portion of the property.
Strategic Transfer Timing
Timing plays a critical role in Medicaid planning. If you transfer your home more than five years before applying for nursing home Medicaid, you can avoid penalties. Early planning gives you more control and more available strategies.
How Legal Guidance Can Protect Your Home and Eligibility
Medicaid planning requires careful decisions about your assets, timing, and eligibility. With thoughtful planning, you may transfer a house to a child while on Medicaid in New York while still qualifying for the care you need.
At the Law Office of Andrew M. Lamkin, P.C., we help New Yorkers build clear, effective Medicaid plans tailored to their goals. Contact us today to discuss your situation and take the next step.
Legal References Used to Inform This Page
To ensure the accuracy and clarity of this page, we referenced official legal and other resources during the content development process:
- Eligibility, N.Y. Soc. Serv. Law § 366 (2025).
- American Council on Aging, New York Medicaid Eligibility for Long Term Care: Income & Asset Limits (updated March 4, 2026).
- New York State Department of Health, Trusts Information.
Andrew Lamkin is principal in the law firm of Andrew M. Lamkin, P.C., where he focuses his practice in the areas of elder law, estate planning and special needs planning, including Wills and Trusts, Medicaid planning, estate administration and residential real estate transactions. He is admitted to practice law in New York and New Jersey.
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