I meet with at least one spouse a week who is fearful of losing her house to the costs of long-term care for her husband.  “I don’t want the nursing home to take my house,” the client will tell me.

The fact of the matter is, the home is an exempt asset, meaning that the spouse can retain the home and her husband can qualify for Medicaid benefits.  This is true irrespective of the value of the home.  The wife could be living in a $200,000 home or a $2,000,000 home, she can retain the home as an exempt asset.

When dealing with a single person who is living at home, there is a limit on the equity value of the home.  In order to be exempt, in New Jersey, the equity value of the home (the fair market value less encumbrances such as a mortgage) cannot be greater than $750,000.  So, if a single person is living at home and seeks to qualify for Medicaid benefit at home, for instance, having Medicaid provide a home health aide to her, the equity value of her home must be no greater than $750,000.

If the equity value is greater than $750,000, then the value the exceeds $750,000 is a countable asset that could disqualify the individual from receiving Medicaid benefits.

Understanding how your home may be exempt allows you to plan strategically for Medicaid while keeping your primary residence secure for your family.

Not all assets are evaluated equally, and a home can be treated differently under certain rules. While that distinction can offer protection, it often comes with conditions that affect how long that protection lasts. Understanding those limits can make a significant difference in planning.