For many Brooklyn seniors, the family home is their most valuable asset. It's a source of emotional comfort and financial security they hope to pass on to their children and grandchildren. But what happens if you need nursing home care in the future? Will you be forced to sell your home to cover the costs? Is nursing home asset protection possible?
At Alatsas Law Firm, Brooklyn elder care attorney Theodore Alatsas understands these concerns. He helps seniors protect their homes and other assets using proven Medicaid planning strategies. With the proper legal guidance, you can find peace of mind knowing your home will remain in the family even if you require long-term care.
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Why Your Home May Be at Risk if You Need Nursing Home Care
Nursing home care in New York is costly. In 2024, average nursing home care cost over $171,000 in the New York City area. Few seniors can afford these costs out-of-pocket for very long. Once your personal savings are depleted, Medicaid can help pay for long-term care, but there's a catch.
Your assets and income must fall below certain limits to qualify for Medicaid. This means you may be required to "spend down" your savings before Medicaid kicks in. In some cases, Medicaid may even place a lien on your home to recover the money spent on your care.
Without proper planning, your family could be forced to sell your Brooklyn home to pay for your nursing home expenses. This is a heartbreaking scenario that no one wants to face. Fortunately, nursing home asset protection strategies are available to protect your residence.
The Medicaid Homestead Exemption: a Nursing Home Asset Protection Strategy
New York's Medicaid program offers some protections for your primary residence, known as the "homestead exemption." This exemption allows you to keep your home while still qualifying for Medicaid if certain conditions are met:
- The home must be your primary residence
- Your equity interest in the home must be less than the allowed amount (which was over $1 million in 2024)
- Your spouse must live in the home, or you must demonstrate an "intent to return" to the home
While the homestead exemption provides some peace of mind, it's not foolproof. If you move into a nursing home and your home is left empty, Medicaid may determine that you don't intend to return and count the property as an asset. Advance planning is key to ensuring that this nursing home asset protection plan works to save your home.
Using Trusts to Protect Your Home
One of the most effective ways to protect your Brooklyn residence from nursing home costs is to transfer ownership into an irrevocable trust. By doing so, the home is no longer considered your personal asset and won't affect your Medicaid eligibility. However, it’s essential that you do not benefit from the trust because the value of any benefit you receive may be counted as a resource for Medicaid purposes. Similarly, revocable trusts may be counted as a resource for Medicaid purposes.
The Five-Year Lookback Period
It's important to note that Medicaid has a five-year "lookback period" for any assets transferred out of your name. If you move your home into a trust within five years of applying for Medicaid, the transfer may be subject to penalties.
This is why it's crucial to begin Medicaid planning well before you actually need nursing home care. By making arrangements early, you can ensure that your home is fully protected and avoid any unintended consequences.
Plan for the Future With Help From Alatsas Law Firm
Don't let the fear of losing your home keep you up at night. With the right Medicaid planning strategies, you can protect your residence, get the care you need, and preserve your legacy for future generations. In addition to securing your home, we may help you with other strategies to secure your legacy.
Brooklyn elder law attorney Ted Alatsas and his team at Alatsas Law Firm have extensive experience helping Brooklyn seniors plan ahead for nursing home care. We can guide you through the process with compassion and skill.