"Can Medicaid take my house?" We hear this worry from so many Brooklyn and Queens families, and we understand why it keeps you up at night. After working your whole life to own your home, the thought of losing it can feel overwhelming. The reality is that Medicaid can recover anywhere from $730,000 to $1,097,000 from your estate, depending on your state's rules.
For families in neighborhoods like Bay Ridge, Bensonhurst, or Astoria who've poured their hearts into making their house a home, these stakes couldn't be higher. But here's what we want you to know - there are proven ways to protect your home from Medicaid estate recovery. We're here to give you friendly, clear advice on strategies like life estates, which create a special kind of joint ownership that shields your property from recovery claims. The key is planning ahead, because there's a five-year lookback period for any asset transfers.
What catches many homeowners off guard is that states must try to recover costs from the estates of people who received Medicaid benefits when they were 55 or older. On top of that, a TEFRA lien may be placed on your property if you're permanently in a nursing home and not expected to return home.
That's exactly why we're committed to helping you understand your options. Whether you call Flatbush, Forest Hills, or any corner of the boroughs home, you deserve to know how to protect what you've worked so hard for. Our heart is in helping families like yours feel secure and taken care of, and we'll walk you through practical strategies to protect your most valuable asset while still getting the care you need when the time comes.
🏡 Do you have to sell your home to qualify for Medicaid in New York?
We understand the fear that grips so many Forest Hills and Bensonhurst families - will you need to sell the home you've cherished for years just to qualify for Medicaid? The good news is generally no - you typically do not have to sell your home to qualify for Medicaid in New York.
What are the Medicaid eligibility rules for homeowners?
Your primary home gets special protection under New York's Medicaid rules. For Community Medicaid, your house stays exempt regardless of who lives there, as long as the equity doesn't go over the state's limit.
Chronic Medicaid (nursing home care) works differently. Your home remains exempt only when:
• Your spouse lives in the home
• A child under 21 years old lives there
• A permanently blind or disabled child of any age resides in the home • Another dependent relative makes it their residence
Even if none of these family members live in your home, you can still maintain eligibility through your "Intent to Return" - a written statement saying you plan to return home someday, even if that seems medically unlikely.
How is your home treated during the application process?
Medicaid looks at your home differently depending on who calls it home. If your spouse or qualifying dependent resides there, there's no equity limit whatsoever. This protection is especially valuable for families in neighborhoods like Bay Ridge or Astoria.
For other situations, New York currently sets a home equity interest limit of $1,130,000 (in 2026). This calculation takes your home's value and subtracts any outstanding mortgage or debt against it.
For Regular Medicaid (non-long term care), there is no home equity interest limit at all. Your Brooklyn brownstone or Queens single-family home won't disqualify you from receiving basic medical coverage.
What happens if your home is over the equity limit?
When your home's equity exceeds the $1,130,000 limit, you have options before selling:
Consider whether exemptions apply first. The equity limit disappears if your spouse or qualifying dependent lives in the home.
You might explore placing your home in a Medicaid Asset Protection Trust. This removes the home from your countable assets after a five-year waiting period.
For homeowners in places like Flatbush or Jamaica Estates where property values have grown substantially, spending down excess equity through home improvements or mortgage payments offers another path.
Despite these protections during your lifetime, your exempt home faces risk from Medicaid's Estate Recovery Program. After your death, New York's Medicaid agency may seek reimbursement from your estate - often by placing a claim against your home. Without proper planning, the home you worked so hard to maintain in your Bay Ridge or Forest Hills neighborhood might be sold to repay Medicaid rather than passing to your children.
We can guide you through these rules, helping protect the home you've worked a lifetime to secure.
Life estates - A powerful way to protect your house
Worried about losing your family home to Medicaid? Life estates offer Brooklyn and Queens homeowners one of the strongest legal tools for protecting their property from Medicaid claims. This strategy creates a special form of joint ownership that divides property rights across time. For families in neighborhoods like Dyker Heights or Middle Village who want to preserve their family home while still qualifying for needed care, a life estate can be exactly what you need.
How does a life estate work in New York?
A life estate splits your property ownership between two people: you as the "life tenant" and your chosen heir as the "remainderman". As the life tenant, you keep complete rights to live in and use your property for your entire lifetime. You'll continue enjoying your Bay Ridge co-op or Kew Gardens home exactly as you always have - living there, collecting any rental income, or making improvements.
Your remainderman (usually your children) gets what's called a "future interest" in the property. They can't use or take possession of the property while you're alive, but they automatically become full owners the moment you pass away. This ownership transfer happens immediately when you die, needing only a death certificate rather than going through court.
Setting up a life estate in New York requires a properly drafted deed that clearly names both you as the life tenant and your chosen remainderman. Once we record this deed, it establishes your continued right to the property while securing your heir's future ownership.
What are the benefits and drawbacks?
Benefits:
• Bypasses probate court completely, saving time and legal expenses • Ownership transfers automatically upon death with minimal paperwork
• Protects property from Medicaid estate recovery when established outside the five-year lookback period
• Property gets a stepped-up tax basis at your death, potentially reducing capital gains taxes for your heirs
Drawbacks:
• You cannot sell or mortgage the property without consent from all remaindermen
• If you sell with remainderman approval, they're entitled to a portion of the proceeds • Once established, a life estate cannot be easily changed or undone
• The remainderman's financial troubles (bankruptcy, divorce, lawsuits) could potentially affect the property
Does a life estate avoid probate and estate recovery?
Yes - a life estate accomplishes both of these important goals. Your Glendale or Elmhurst home bypasses probate entirely since ownership transfers automatically at death. This saves your family from lengthy court proceedings that typically delay property transfers by a year or more.
Even more important for families facing long-term care needs, a life estate protects against Medicaid estate recovery. Since ownership transfers immediately upon death, your home is no longer part of your estate for recovery purposes. This means the Medicaid agency cannot place a claim against your property to get back benefits paid during your lifetime.
Timing is everything, though. The life estate must be established outside Medicaid's five-year lookback period to avoid penalties. For residents in areas like Flatbush or Jackson Heights where home values have risen dramatically, this advance planning becomes essential.
We guide Queens and Brooklyn homeowners through creating properly structured life estates that protect your most valuable asset while ensuring you qualify for needed care when the time comes.
🔐 How can an irrevocable trust help protect your home from Medicaid?
For families in Sheepshead Bay and Jackson Heights who want stronger protection than a life estate can offer, irrevocable trusts provide another path forward. We won't sugarcoat it - these are more complex arrangements, but when you're looking at potentially losing hundreds of thousands of dollars in home equity, the extra planning often makes sense.
What is a Medicaid Asset Protection Trust (MAPT)?
Think of a Medicaid Asset Protection Trust as a special legal box that holds your home, keeping it separate from what Medicaid counts when determining your eligibility. Once your Canarsie or Sunnyside home goes into this trust, Medicaid no longer considers it yours for the purposes of qualifying for benefits. This lets you preserve your property as an inheritance for your children while still getting the care you need.
Here's how it works: you transfer ownership of your home to the trust and appoint someone you trust - usually one of your adult children - to manage it as the trustee. The trust is irrevocable, which means once it's set up, you can't change your mind or cancel it. That might sound scary, but it's exactly what makes the protection work. Since you no longer legally own the home, Medicaid can't count it against you.
How does a trust affect Medicaid eligibility?
Once your Bayside or Crown Heights property is safely inside a properly structured MAPT, it disappears from Medicaid's asset calculations. This means you can qualify for benefits without having to spend down your home's value first - a huge relief for families who've watched their neighborhoods' property values climb over the years.
But timing is everything. Remember that five-year lookback period we mentioned earlier? It applies here too. You need to establish the trust at least five years before applying for Medicaid, or you'll face penalties that could delay your eligibility. We know that feels like a long time to plan ahead, but when you're protecting potentially your most valuable asset, it's worth the foresight.
Can you sell the home once it's in a trust?
You might worry that putting your home in a trust means it's locked away forever, but that's not true. Your trustee can absolutely sell your Ridgewood or Park Slope home if circumstances change. The trustee handles all the paperwork - the listing, contracts, and closing documents. The sale proceeds stay within the trust for continued protection.
What's particularly helpful is that your trustee can use those proceeds to buy a different home, perhaps something smaller or in a more manageable location. This flexibility doesn't restart that five-year clock because the assets never leave the trust's protection.
What are the tax benefits of using a trust?
A well-structured MAPT protects more than just Medicaid eligibility - it preserves important tax advantages too. You keep that valuable $250,000 capital gains exclusion if you sell your primary residence. Plus, your heirs get what's called a stepped-up tax basis when you pass away, which can eliminate capital gains taxes that built up during your lifetime.
We guide Brooklyn and Queens families through setting up these trusts properly, making sure every detail protects what you've worked so hard to build. Your trust means everything to us, and we're committed to looking out for you and your loved ones as you plan for whatever the future holds.
📅 What is the Medicaid lookback period and why does it matter?
Timing can make or break your strategy to protect your Sunset Park or Bayside home. The lookback period is one of the most important rules for Medicaid applicants across Brooklyn and Queens neighborhoods to understand.
How long is the lookback period in New York?
When you apply for nursing home Medicaid in New York, officials examine your financial history for the previous 60 months (five years). Any asset transfers made during this timeframe undergo thorough scrutiny by Medicaid authorities.
For Community Medicaid (home care services), New York currently has no lookback period. This allows you to transfer assets and immediately qualify for home care services. Though plans exist to implement a 30-month lookback for Community Medicaid, this has been unofficially delayed until sometime in 2025 or 2026.
What happens if you transfer your home during this time?
Transferring your home within the lookback period can trigger serious consequences. If Medicaid discovers you gave away your Flatbush brownstone or sold your Rego Park home below market value, they'll impose a penalty period of ineligibility.
The penalty length is calculated by dividing the value of transferred assets by the average monthly cost of nursing home care in New York. For instance, if you gifted your $800,000 Forest Hills home and nursing home care costs $16,000 monthly, you'd face a 50-month waiting period before receiving benefits.
Even well-intentioned gifts like helping your grandchild with college tuition or giving your Astoria condo to your daughter can be flagged as violations. This is why proper planning matters so much for families who want to help their loved ones while protecting their own future care needs.
How can you plan ahead to avoid penalties?
Start planning early. Establish your protection strategy at least five years before you anticipate needing nursing home care.
Use exemptions wisely. You can transfer your home penalty-free to:
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A child under 21
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A disabled or blind child (of any age)
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A sibling who's lived in your home for at least one year and has equity interest
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A caregiver child who lived with you for at least two years, providing care that prevented nursing home placement
Spend down assets properly through:
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Home improvements to your Kew Gardens or Brighton Beach property
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Paying off debts
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Purchasing medical equipment or services
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Prepaying funeral arrangements
At Alatsas Law Firm, your trust means everything to us when it comes to protecting what you've worked so hard for. We guide Bay Ridge and Jamaica Estates homeowners through these rules, helping you time your planning perfectly to protect what matters most to your family.
Why is legal advice essential for protecting your home in New York?
When it comes to protecting your Astoria or Bay Ridge home from Medicaid regulations, the difference between keeping or losing your family home often comes down to getting the right legal guidance. With nearly 30 years of experience, we understand that these complex rules can feel overwhelming, and we're committed to looking out for you and your loved ones with kindness, respect, and top-notch service.
How do state-specific rules affect your options?
New York's Medicaid requirements are different from what you'll find in other states, and those differences matter for your family's future. While your home enjoys certain protections during your lifetime, the state can place a lien after your death unless you've taken specific protective measures. Here's something important to know: only a licensed attorney can legally advise on these crucial Medicaid planning matters—non-attorneys providing such advice commit a third-degree felony.
When should you talk to an elder law attorney?
We always tell our Williamsburg and Corona clients that the best time to plan is before facing a health crisis. Early planning gives you more protection options and helps you avoid costly penalties that could put your home at risk. You might worry about legal fees, but professional guidance typically saves families thousands of dollars down the road. Contact us right away if you're facing major life changes like:
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Chronic illness diagnosis
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Cognitive decline
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Your spouse's death
What mistakes can cost you your home?
We've seen too many families in Flushing and Bushwick lose their homes because of these common errors:
• Waiting until nursing home placement becomes urgent (when monthly costs exceed $13,000)
• Trying do-it-yourself methods without understanding New York's specific requirements
• Relying only on nursing home staff whose loyalty isn't to your family
• Misunderstanding look-back period penalties
• Failing to document asset transfers properly
Your trust means everything to us. Unlike Medicaid caseworkers who represent the state's interests, our elder law attorney focuses exclusively on protecting your Woodhaven property while helping you qualify for the benefits you need. We promise to be there for you, offering our best advice and support, so you can have peace of mind knowing your home is protected.
Conclusion
Your trust means everything to us, and we're committed to looking out for you and your loved ones as you protect what you've worked so hard for. After working hard your whole life, you shouldn't have to worry about losing your family home to Medicaid recovery - and with the right planning, you won't have to.
We've walked you through proven strategies that families across Brooklyn and Queens have used to keep their homes safe. The five-year lookback period means timing is everything, but when you plan ahead, you have powerful tools at your disposal. Whether it's setting up a life estate or creating a Medicaid Asset Protection Trust, we're here to help you find the right approach for your family's situation.
We understand that these rules can feel overwhelming. Each family's circumstances are different, and what works for your neighbor in Bay Ridge might not be the best fit for your situation in Forest Hills. That's exactly why we provide personalized legal services - because your family deserves a plan that's tailored to your specific needs and goals.
Our heart is in helping you and your family feel secure and taken care of. With nearly 30 years of experience serving families in Brooklyn, Queens, and Staten Island, we've helped countless homeowners protect their most valuable asset while ensuring they get the care they need when the time comes. We promise to be there for you, offering our best advice and support, so you can have peace of mind knowing everything is in good hands.
Don't wait until it's too late. The best time to protect your home is before you need long-term care, when you have the most options available.
Contact us today to schedule a free*, no-obligation consultation to learn how we can help you protect your home and assets from Medicaid recovery. We offer free consultations in our conveniently located Brooklyn law office, where we can discuss your specific situation and create a protection plan that works for your family.
