Medicaid Recipient To Inherit a House

by Maria D.
(Washington, DC)

Question:

A current Medicaid recipient in a nursing home will soon inherit a house. He lived in that house before going into the nursing home. Now, he wants to move back into the house after he inherits it. If he does so, will he still be eligible for Medicaid?

He would like to live in the house as his primary residence. Would he have to sell the house in order to stay on Medicaid?



Answer:

While there is no specific statute on this exact situation, as long the recipient has the "intent to return" to the home, it should be an exempt asset. Note that 11 states have more restrictive tests, such as a physician's examination and determination that the applicant is actually able to return home; if not, then the house would become a countable asset at that time.