A Deeper Look at How to Protect Your Home
One of the biggest fears families have when facing nursing home care is losing the family home. Many people ask, “Can the nursing home take my house?”
The answer is more complicated than a simple yes or no. In many cases, you may be able to keep your home while you are alive, but the State of Maine may seek repayment after you pass away. The good news is that there are situations where the home is protected and planning strategies that may help protect the home for your family.
Understanding how the rules work is the first step in protecting what you have worked for.
When Is Your Home Protected?
Under MaineCare rules, your primary residence is often considered an exempt asset while you are alive. This means you may still qualify for MaineCare even if you own a home.
Your home may be protected while you are alive if:
- You intend to return home
- Your spouse lives in the home
- A disabled child lives in the home
- In some cases, a caregiver child lives in the home
Because the home is often exempt during your lifetime, many people are able to qualify for MaineCare without selling their home.
If you want to understand how all assets are treated when entering a nursing home, you can read more here:
https://aginginmaine.com/what-happens-to-your-assets-nursing-home-maine/
What Is Estate Recovery in Maine?
Although your home may be protected while you are alive, the State of Maine has a program called Estate Recovery.
After a MaineCare recipient passes away, the state may seek reimbursement for the cost of care paid on that person’s behalf. This often means the state may place a claim against the home.
In many cases, the home may need to be sold to repay the state unless steps were taken in advance to protect the property.
This is why long-term care planning is so important — protecting the home often requires planning ahead of time.
When Can the State Make a Claim Against Your Home?
Estate recovery typically occurs:
- After the MaineCare recipient passes away
- When there is no surviving spouse living in the home
- When the home goes through probate
If the home must go through probate, the state may file a claim as a creditor against the estate.
This is why avoiding probate and planning ahead can be important when trying to protect the home.
Are There Exceptions to Estate Recovery?
Yes. There are several important exceptions where the home may be protected from estate recovery.
The Home May Be Protected If:
- A spouse is still living in the home
- A disabled child is living in the home
- A caregiver child lived in the home and provided care for a specific period of time before the parent entered the nursing home
- In some cases, if there is an undue hardship
These exceptions are very fact-specific, so families often want to get advice before making decisions about the home.
Should You Transfer Your House to Your Children?
Many people think the solution is to simply sign the house over to their children. Unfortunately, this can create a penalty under MaineCare’s 5-year lookback rule.
If you transfer your home within five years of applying for MaineCare, you may be disqualified from receiving MaineCare benefits for a period of time.
You can read more about the lookback period here:
https://aginginmaine.com/mainecare-5-year-lookback-explained/
Because of this rule, transferring a house should not be done without understanding the consequences.
How Do People Protect Their Home?
There are legal planning strategies that may help protect a home from nursing home costs and estate recovery, depending on the situation and how far in advance planning is done.
Some strategies may include:
- Irrevocable trusts
- Life estate deeds
- Transfers to certain exempt individuals
- Spousal planning strategies
- Long-term care planning in advance of needing care
You can read more about strategies to protect your home here:
https://aginginmaine.com/how-to-protect-your-house-from-nursing-home-costs/
When Should You Start Planning?
The earlier planning is done, the more options are usually available. Waiting until someone is already in a nursing home can limit options, but there are often still planning strategies available depending on the situation.
Families who plan early often have more options to protect their home and savings.
Final Thoughts
So, can the nursing home take your house in Maine?
In many cases, you can keep your home while you are alive. However, after you pass away, the State of Maine may seek reimbursement through estate recovery. With proper planning, there may be ways to protect your home for your spouse or your family.
Every situation is different, and getting advice early can make a significant difference in what you are able to protect.
Take the First Step
If you have questions about MaineCare, nursing home costs, or how to protect your home, we can help you understand your options and create a plan that works for your family.
Contact our office today to schedule a consultation and start planning for the future.
Call us at (207) 848-5600 or contact us through our website to get started.
