The single most common fear we hear at Brumbaugh Law Firm is about the house. There is a pervasive belief that the moment you apply for long-term care benefits, the state of Ohio seizes the deed to your home and evicts your spouse.
Let’s start by clearing the air: No, Medicaid does not “take” your house while you are alive. The state of Ohio will not show up with a moving truck the day you are admitted to a nursing facility.
However, simply knowing they won’t take the keys today doesn’t mean your property is safe. The danger lies in a legal process called Medicaid Estate Recovery, which allows the state to act as a creditor against your estate after you pass away.
Understanding the difference between what happens now (Eligibility) and what happens later (Recovery) is the key to protecting your legacy.
Understanding Eligibility vs. Estate Recovery
To deal with the system, you must stop viewing “Medicaid rules” as one big bucket. In reality, you are dealing with two completely different sets of rules found in the Ohio Administrative Code.
1. Eligibility Rules (While You Are Alive)
These rules determine if you qualify for benefits. Under these rules, your home is almost always considered an “exempt asset.”
For 2026, an individual in Ohio can generally keep their primary residence and still qualify for Medicaid if:
- The Equity Value is Under the Limit: The home equity is roughly $730,000 or less (this figure adjusts annually for inflation).
- Intent to Return: You sign a statement indicating that, even if you are in a nursing home, you intend to return to the house if your health improves.
- Spousal Protection: A spouse, minor child, or disabled child still lives in the home (regardless of the home’s value).
Under the eligibility rules, your house is safe. You can receive care, and your spouse can continue living there.
2. Estate Recovery Rules (After You Die)
This is where the “myth” of taking the house originates. Once the Medicaid recipient passes away (and if there is no surviving spouse), the state of Ohio is federally mandated to seek repayment for the care they paid for.
The Reality of Ohio’s Estate Recovery Program
Ohio operates one of the most aggressive recovery programs in the nation. According to recent data, the state has recovered over $87.5 million in a single year from the estates of deceased Medicaid recipients.
Unlike private insurance, Medicaid is technically a loan for those over age 55.
- Who is targeted? Individuals aged 55 or older who received Medicaid benefits, or individuals of any age who were permanently institutionalized.
- What costs are recovered? In Ohio, the state seeks recovery for all Medicaid services provided after age 55, not just nursing home costs. This includes doctor visits, prescriptions, and home health aides.
If you own a home in your name alone when you die, the state puts a lien on the property or forces a sale during probate to settle the bill.
Strategic Planning Timelines
Can you stop this? Yes. But the strategy depends entirely on when you start planning. The legal tools available to an estate planning attorney in Ohio change drastically depending on whether you are five years ahead of a diagnosis or in the middle of a crisis.
The Proactive Plan (5+ Years Out)
The gold standard for protection is the Medicaid Asset Protection Trust (MAPT).
- How it works: You transfer the title of your home into an irrevocable trust. You retain the right to live there for the rest of your life.
- The Result: Because the trust owns the house, not you, the house is not part of your estate when you die. Therefore, under current Ohio law, Medicaid cannot place a lien on it.
- The Catch: You must do this five years before applying for Medicaid to clear the “Look-Back Period.”
The Crisis Plan (Immediate Need)
If a loved one has just suffered a stroke or a fall, you do not have five years. However, all is not lost. Proper Medicaid planning Ohio strategies can still save a significant portion of assets or the home itself.
- Transfers: Assets can often be transferred to a healthy “Community Spouse” without penalty.
- Caregiver Child Exception: If an adult child has lived in the home for at least two years and provided care that kept the parent out of a nursing home, the house can be transferred to that child penalty-free. It is critical to have the proper documentation in place for this exception to work.
- Sibling Exception: If a sibling has an equity interest in the home and lived there for one year prior, the home may be transferred.
Exemptions and Hardship Waivers
Even if no prior planning was done, the Ohio Administrative Code provides specific “stop signs” that prevent the state from collecting. The state cannot recover against your home if any of the following people are still living in it:
- Your surviving spouse.
- Your child who is under age 21.
- Your child who is blind or permanently and totally disabled (of any age).
The Undue Hardship Waiver
If the sale of the home would cause “undue hardship” to the survivors, you can apply for a waiver. Ohio creates a narrow window for this.
For example, if the survivor was living in the home, providing care, and the home is their sole source of income (e.g., a working farm), or if the survivor would be deprived of basic necessities like food, clothing, or shelter, a waiver may be granted.
Note: This is difficult to prove and requires the assistance of an experienced Ohio elder law attorney.
Frequently Asked Questions
Can I just sell my house and give the money to my kids?
No. This is the most dangerous mistake you can make. Ohio Medicaid has a 5-year Look-Back Period. Any gift or transfer for less than fair market value in the 60 months prior to application will result in a penalty period where Medicaid refuses to pay for your care. If you have already done this and were denied for Medicaid now what? You need legal counsel immediately to mitigate the damage.
What if my house is jointly owned?
It depends on how it is titled. If it is “Joint Tenants with Rights of Survivorship” (JTWROS), in some states, this avoids recovery, but Ohio has tightened rules regarding probate and non-probate transfers. Merely adding a child’s name to a deed often causes more problems than it solves, including exposing the house to the child’s creditors or divorce proceedings.
Does a Life Estate protect the house?
A Life Estate can avoid probate, but it does not protect against estate recovery. In fact, Ohio by statute determines the value of a life estate and the values are heavily weighted in the State of Ohio’s favor.
Your Next Steps
The rules regarding Medicaid and your home are written to be complicated, but the path to protection is clear. You do not have to lose your family’s legacy to the high cost of long-term care.
If you are healthy, the time to build your shield is now. If you are in crisis, do not sign any admission paperwork or sell or transfer any property until you understand your rights.
At Brumbaugh Law Firm, we help families across Ohio handle these exact challenges every day. Contact us today to begin your plan.
