I recently received a call from Samantha who posed a question to me. What would happen to her home should her husband, Nicholas be approved for the Medicaid benefit?

Samantha and Nicholas have been married for fifty-three years. Nicholas was a former general contractor and Samantha was a teacher. They were hardworking individuals who extended themselves to provide for their two children. After years of putting away money, the couple purchased a home and diligently paid their mortgage every month until it was finally paid off. Unfortunately, Nicholas was recently diagnosed with Parkinson’s disease and is in need of a higher level of care. When Samantha heard that she will need to spend down some of their assets for Nicholas to be eligible for Nursing Home Medicaid, she became concerned about what would happen to their home. Would she have to move? It was Samantha’s dream to be able to leave her home to her children. She was afraid that applying for Medicaid for Nicholas would inhibit her ability to do so.

I was delighted to be the bearer of good news, and informed Samantha that according to NJ Medicaid guidelines, a community spouse may keep the home. However, Nicholas, the spouse in need of Medicaid, would have to have his name removed from the deed. The full ownership would now be under Samantha and the home will no longer affect Nicholas’s eligibility. Samantha was relieved, thanked me for my time and will be working with Senior Planning services to get Nicholas approved for Medicaid.

In our next blog we will discuss other situations relating to a home in connection to Medicaid.

*Please note that there are other asset preservation concerns that one should take should the community spouse pass away.