That will depend on the state in which you live. Federal law requires that the house be considered an asset unless there is an expressed "intent to return" to the home by the Medicaid applicant.
Many states, including Florida, automatically assume this is the position of the applicant and the primary residence is not countable. Therefore, in Florida at least, it is generally considered that the homestead property is exempt.
Recent Federal law has put a new spin on this, however, in that there is now a home equity limit for Medicaid beneficiaries. Depending on the state the limit is between $500,000 and $750,000. If the primary residence is worth more than this amount the application may be denied.
As important will be the answer to these questions: How will maintenance and taxes be paid for?, and, what happens when the Medicaid recipient/homeowner dies? Most states now have active "Medicaid Estate Recovery" programs whereby (mostly) probate assets are subject to claim by the state Medicaid program to the amount expended on the beneficiaries behalf.
If the house is subject to probate it will also be subject to Medicaid Estate Recovery. There are techniques to avoid this.
For more information or help visit www.RalphRobbins.com
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