Can I keep my parent's house if they go on Medicaid?

The short answer: while your parent is alive and on Medicaid, the house is usually exempt as a countable asset, up to a state-set equity limit. That doesn't mean the family keeps it permanently.

While the parent is alive:

• The home is exempt from Medicaid's asset count if home equity is below the state limit (typically $713,000–$1,071,000 in 2024, varying by state)
• The exemption usually requires the parent to "intend to return home" — even if returning is unlikely. Most states accept a self-certification.
• If a spouse, minor child, disabled child, or sibling with an equity interest still lives in the home, additional protections apply.

After the parent dies:

• Federal law requires states to seek "estate recovery" — recouping Medicaid spending from the deceased recipient's probate estate
• The home is the most common asset states recover from
• States vary widely in how aggressively they pursue recovery and what they exempt
• Hardship waivers exist for surviving spouses, dependents, and certain heirs — not automatic

What protects a house long-term:

• Caregiver child exemption — if an adult child lived in the home and provided care that kept the parent out of a nursing home for at least 2 years before the move, the home can sometimes be transferred to that child without triggering a penalty
• Life estate deeds done at least 5 years before applying for Medicaid
• Irrevocable Medicaid asset protection trusts, funded at least 5 years out
• Joint ownership with right of survivorship with a spouse — protects it during life but may not protect against estate recovery in some states

What gets families in trouble:

• Adding a child to the deed within the 5-year window (counts as a transfer for less than fair value)
• Selling the home below market to a relative inside the look-back
• Assuming the home is automatically protected because Mom "lived there"

If the house matters to the family, the planning has to start years before Medicaid does. Talk to a certified elder law attorney in your state — Medicaid rules are state-specific and the federal floor is just that.