THE SHORT ANSWER

Medicaid in New York does not take the house while someone is alive. The home is generally not counted as an asset while the applicant intends to return, or while a spouse or certain relatives live there, up to a home-equity limit of $1,130,000 in 2026. After the Medicaid recipient dies, New York may seek repayment from their probate estate, with important exceptions for surviving spouses and children.

For many families, the house isn't just the biggest asset — it's where they grew up. Here is what actually happens to it under New York Medicaid, stated as calmly and accurately as we can.

While your parent is alive

The home is usually an exempt asset — it isn't counted toward the Medicaid limit — when any of these is true:

  • Your parent lives there, or intends to return
  • A spouse lives there
  • A child under 21, or a blind or disabled child, lives there

There is a cap on home equity. In 2026, equity over $1,130,000 can affect eligibility unless a spouse or qualifying child lives there.

If the house is sold

Once the house is sold, the money is a countable asset. That generally means private-pay again until the funds are spent on care or otherwise handled within the rules. Selling can still be the right choice — it often pays for years of good care. Just know the effect before listing it. Using the house to pay for assisted living.

Giving the house to family

Transferring the house within the 60 months (five years) look-back is usually treated as a gift and can trigger a penalty. There are specific exceptions, including transfers to:

  • A spouse
  • A child under 21, or a blind or disabled child
  • A child who lived in the home for at least two years before the parent's move to care and provided care that kept the parent at home (often called the caregiver child exemption)
  • A sibling who has an ownership interest and lived there for at least a year

These exceptions have documentation requirements. They are exactly the kind of thing to review with an elder law attorney. The look-back, explained.

After your parent dies: estate recovery

New York can seek repayment of Medicaid costs from the estate of a recipient who was 55 or older. In New York, recovery is generally limited to the probate estate — assets that pass through the will or intestate process.

Recovery is deferred while there is a surviving spouse, a child under 21, or a blind or disabled child. There are also hardship waivers. Estate recovery in New York.

What changes in 2028

A 2025 federal budget law sets a flat home-equity limit of $1,000,000 for long-term care Medicaid, beginning in 2028, and it isn't indexed to inflation. Homes on agricultural lots are excepted. For most Western New York families, home values sit well under this cap, but it's worth knowing. Changes coming in 2027 and 2028.

Questions families ask

Can Medicaid put a lien on my parent's house in New York?

In limited situations. The most common way New York recovers costs is through the probate estate after death. An elder law attorney can tell you whether a lien could apply in a specific case.

What if the house is sold while my parent is on Medicaid?

The sale money becomes a countable asset, which usually affects eligibility until it's spent or otherwise handled.

Can a parent give the house to a child?

Giving it away within the 60 months (five years) look-back usually causes a penalty, but there are exceptions — for example, to a spouse, a disabled child, or a child who lived there and provided care for two years.

What changes in 2028?

A federal law sets a flat home-equity limit of $1,000,000 for long-term care Medicaid, not adjusted for inflation.

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