Medicaid can be an excellent program for providing essential medical care to people with limited means. However, a Medicaid recipient may be required to repay the state for the care they receive. And when it comes to paying the state back, many New York homeowners ask the same fearful question: Does Medicaid take your house after you die in New York? In essence, the answer to this question is “maybe,” but there are ways families can protect themselves.
If you’re a Medicaid recipient worried about your spouse, your children, or the legacy you want to leave behind, experienced legal guidance can help. Our legal team at the Law Office of Andrew M. Lamkin, P.C., is dedicated to helping New York residents with estate planning matters, including Medicaid asset protection.
An Answer to Expensive Long-Term Care
Many adults require long-term or nursing home care, but that care is costly. Nursing home care in New York can easily exceed $150,000 per year, and many families turn to Medicaid for assistance with the costs.
Medicaid can be a lifeline, but it comes with strict financial rules and a process called the Medicaid Estate Recovery Program (MERP) in New York. Without careful planning, Medicaid may seek reimbursement from countable assets left behind, including a home that passes through probate.
Medicaid Eligibility Rules in New York
To qualify for Medicaid long-term care, you must meet income and asset limits. These limits change periodically, but the general framework remains consistent.
Asset Limits
In 2025, individuals applying for Medicaid long-term care who are single may generally retain no more than approximately $32,000 in resources. If you own a home or other significant property in New York, you can see how a limit like this creates challenges for many families.
Income Rules
Medicaid also limits monthly income. In 2025, single-person households generally could not exceed income levels between approximately $21,500 and $35,000 per year. That limit increased by about $8,000 for each additional person in a household. These figures are adjusted periodically by the state.
Is Your Home a Countable Asset?
Your home is technically a countable asset, but a home is usually treated as exempt for eligibility purposes when you apply for long-term care if you have no more than $1,097,000 of equity in your home. This equity limit may also change from year to year.
Medicaid Estate Recovery in NY: What Happens After Death?
Federal law requires New York to seek reimbursement for Medicaid benefits paid for recipients who were at least age 55 or older or permanently institutionalized when they died. This process is known as Medicaid estate recovery.
What Medicaid Can Recover
The state may seek repayment for:
- Nursing home care,
- Home care services, and
- Certain hospital and prescription costs.
Recovery is limited to the total amount Medicaid paid on the recipient’s behalf.
How Recovery Works
So, how does Medicaid potentially take your house after you die in New York? After death, the Medicaid estate recovery program in New York may file a claim against your probate estate. If your home passes through probate, it may be subject to recovery. Medicaid may place a lien on the property and collect the proceeds from the sale of the house. This is often where many families are caught off guard.
A Medicaid Lien on a House in NY: When Can It Happen?
A Medicaid lien on a house may be placed after death. And Medicaid may place a lien during life if you are permanently institutionalized, subject to statutory protections.
However, the state may defer, waive, or exempt your assets from recovery if:
- You have a surviving spouse,
- You have a surviving child under 21,
- You are a Native American or Alaskan Native recipient with protected resources,
- You have a child who is blind or has a disability, or
- Certain hardship criteria apply.
These exceptions are narrow and should not be relied upon as a primary planning strategy. We can help you determine if you qualify for relief and develop a planning strategy to preserve as much of your property as possible for your beneficiaries.
Medicaid Asset Protection Trusts
A family that wants to successfully protect their home from Medicaid in NY plans before long-term care is needed. A Medicaid Asset Protection Trust (MAPT), also known as a Medicaid home protection trust, can be an effective tool.
When a MAPT is properly drafted and funded, your home can be removed from your recoverable estate; however, timing and intent matter.
Transferring your home to a trust at death will likely still subject your home to recovery after you pass. Transferring your home to a revocable trust while you are still alive usually does not protect it, as you retain control, making it subject to recovery. However, transferring your home to an irrevocable trust during your lifetime, outside of the Medicaid lookback period, may protect it from the state’s recovery measures. These types of irrevocable trusts may also prevent your home from being considered a countable asset when you apply for Medicaid eligibility.
How an Attorney Can Help
Balancing Medicaid eligibility, long-term care needs, and ensuring you and your loved ones have support for day-to-day matters can be challenging. An experienced attorney can:
- Review your finances and property ownership to determine your eligibility;
- Identify and seek relevant waivers, exemptions, or planning opportunities; and
- Prepare legally compliant documents to protect your assets for you and your loved ones.
Without planning, your home may be exposed to estate recovery. With planning, families often preserve their primary residence.
Speak with Our Estate Planning Attorney Before a Crisis
If you are asking, Does Medicaid take your house after you die in New York? The answer depends on planning. At the Law Office of Andrew M. Lamkin, P.C., we focus on helping New York homeowners utilize lawful Medicaid planning strategies to protect their homes and avoid unnecessary estate recovery. Our practice emphasizes proactive planning, careful trust design, and guidance tailored to each family’s situation.
Contact our office to schedule a consultation before a health crisis forces you to make rushed decisions.
Resources:
- New York City, Medicaid Income Eligibility Levels (2025), link.
- New York State, Estimated Average New York State Nursing Home Rates (2024), link.
- Office of Health Insurance Programs, 2025 Medicaid Levels and Other Updates (Jan. 8, 2025), link.
- New York State Bar Association, When Medicaid Planning Turns into Estate Litigation (Sept. 30, 2024), link.
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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