Can the Government Take Your House?

The Takeaway

Medicare does not cover long-term nursing home stays — Medicaid does, but only if you're nearly broke.
Without planning, Medicaid may try to recoup nursing home costs by taking your home after you die.
A special type of trust — a Medicaid Asset Protection Trust (MAPT) — can shield your home.
You must set up the trust at least 5 years in advance due to Medicaid’s look-back rules.
It’s crucial to talk to an elder law attorney to get it right.

“Will they take my house?”

It’s one of the most common — and heartbreaking — questions elder law attorneys hear. A spouse has died. Or a parent is suddenly in a nursing home. And now the family is learning that the government might come after the home they worked decades to pay off.

Here’s the blunt truth: if you end up needing long-term care and rely on Medicaid to pay for it, the state* may try to reclaim the cost by seizing your home after your death. *Yes, “state” meaning like Kansas or Alabama and not “state” meaning the U.S. government)

This isn’t about fraud or punishment — it’s the law. But there’s also a legal way to protect yourself and your family.

Why Medicaid Can Go After Your House

Medicaid is a needs-based program, designed to help people with very limited assets. To qualify, you often have to “spend down” most of what you own. Your home can be an exception while you’re alive — but that’s not where it ends.

Under something called the Medicaid Estate Recovery Program (MERP), many states are required to go after a person’s estate (often the home) after they die, to recover what Medicaid paid for their care.

If no legal protections are in place, the home may have to be sold — even if you hoped to leave it to your children.

How a Medicaid Asset Protection Trust Works

A Medicaid Asset Protection Trust (MAPT) is a legal tool that can help you protect your home and still qualify for Medicaid, if needed later on.

Here’s the basic idea:

You transfer ownership of your home to the trust, not your kids or anyone else directly.
The trust is irrevocable, which means you can’t just take the house back once it’s in the trust.
You still get to live in the home for the rest of your life.
Because the trust — not you — owns the house, Medicaid won’t count it as part of your assets.
After you pass away, the home can go to your chosen heirs without going through estate recovery.

But here’s the kicker: you must set it up at least 5 years before applying for Medicaid. That’s the so-called “look-back period.” If you try to do this too late, it can trigger penalties.

Is This Just for Rich People?

Not at all. In fact, many people who’ve worked blue-collar jobs or lived modestly are the ones most at risk of losing everything.

If your home is your main asset — and you want it to go to your spouse, kids, or grandkids instead of the state — a MAPT can be a smart and legal way to protect it.

What to Watch Out For

Don’t DIY this. There are too many landmines in trust law and Medicaid rules.
Avoid giving your home outright to your kids. That can cause tax problems and put your house at risk if they get divorced or sued.
Make sure your trust is done by an attorney who specializes in elder law — not just any estate planner.

How to Get Started

Find a qualified elder law attorney in your state.
Ask if a Medicaid Asset Protection Trust is right for your situation.
Make sure you understand the 5-year look-back and how it might apply to you.
Start now — even if you’re healthy. The best time to do this is before you need it.

Download our free MAPT guide now. Print it out and take it to an elder law attorney so you can get your questions answered.

Download the guide here

Final Thought: Protecting Your Legacy

You shouldn’t have to lose your home just because you got sick. If you’ve spent a lifetime building something, a little planning now can make sure it stays in the family — not on a government spreadsheet.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Medicaid rules vary by state and situation. Always consult a qualified elder law attorney before making decisions about trusts or Medicaid planning.