One of the most common concerns when applying for Medicaid is whether owning a home will disqualify you from receiving benefits, especially when it comes to long-term care. The good news is that under Utah’s Medicaid rules, you can own a home and still qualify for Medicaid, provided certain conditions are met. Below, we explain how Medicaid treats homeownership and the important rules you should know.
Excluding Your Home from Nursing Care Medicaid Eligibility
Under Utah Nursing Care Medicaid regulations, an individual’s home is excluded from being counted as a resource when determining Medicaid eligibility if it is the individual’s principal place of residence and it meets certain equity limits.
For Medicaid purposes, a “home” can include real or personal property, fixed or mobile, located on land or water, as long as it serves as the applicant’s primary residence. This rule applies to:
- A single individual
- A married couple (only one home is excluded)
What Qualifies as a “Home”?
A home includes:
- The shelter in which you live
- Any related buildings on the property
- The contiguous real property on which the home is located (meaning land that is not separated from the home by other properties)
Even if you’re temporarily absent from your home, it can still be excluded as long as you intend to return. If you become a resident of a medical institution, your home can still be excluded from being counted as a resource if you or your representative state in writing that you intend to return to live there.
Special Rules for Institutionalized Individuals
For individuals in nursing homes or receiving waiver services, the home may still be excluded under the following circumstances:
- Short-Term Stay: If a doctor certifies that the individual is likely to return home within six months of being admitted to a medical institution, the home will not be counted as a resource during this time.
- Reliant Relative: The home remains excluded if it is occupied by the individual’s spouse or a “reliant relative” (someone who relies on the individual for financial or other support). This can include a child, grandchild, parent, sibling, or other family members.
If any of these conditions are met, the home will remain an excluded resource.
Contiguous Property and Home Equity
Medicaid also excludes contiguous property, meaning any land that is not separated from your home by other property (with the exception of roads or rivers). This includes lots and any related buildings on those lots.
However, there is an important consideration regarding substantial home equity. If the equity in your home exceeds a certain limit, you may not qualify for Medicaid services unless certain exceptions apply. This limit is updated annually, and it’s important to stay informed about the current threshold when applying for Medicaid.
Exceptions When You Don’t Live in the Home
If you no longer live in your home and do not intend to return, the home may be considered a countable resource. However, there are some exceptions to this rule:
- Undue Hardship for a Co-Owner: If the home is jointly owned, Medicaid may exclude it if selling the property would cause undue hardship to the co-owner. For example, if the co-owner uses the home as their primary residence and would have no other available housing, Medicaid may allow the home to remain excluded.
Protecting Your Home While Qualifying for Medicaid
Understanding Medicaid’s rules regarding homeownership can be complex, but the key takeaway is that you can often keep your home and still qualify for Medicaid long-term care benefits. However, once you or a loved one needs institutional care, it’s important to explore these rules in detail to avoid complications and ensure that your home is protected.
Need Help with Medicaid and Protecting Your Home?
If you have questions about how owning a home affects Medicaid eligibility or need assistance with long-term care planning, Ellsworth Law Firm is here to help. Our experienced elder law attorneys can guide you through the process and ensure that your assets are protected. Contact us today at 801-210-2829 or visit our office in Lehi, Utah, to schedule a consultation.
