How to Avoid a Nursing Home Taking Your House in California
- Linda Varga
- Jul 24
- 3 min read
📌 Quick Answer: To avoid a nursing home or Medi-Cal taking your house, you need to plan ahead by using legal tools such as irrevocable trusts, life estates, and exempt asset planning. California does not seize your home while you’re alive, but your estate could face a Medi-Cal recovery claim after your death—unless protections are in place.
One of the biggest fears for aging Californians is losing their home to pay for nursing home care. While nursing homes themselves do not take your house, the cost of long-term care—often paid for by Medi-Cal—can trigger a state recovery claim after you pass away. Fortunately, there are legal strategies you can use to prevent this from happening.
At Moravec, Varga & Mooney, we help families develop estate and Medi-Cal plans that protect their home, savings, and legacy.
🏡 Can a Nursing Home Really Take Your House?
No, a nursing home cannot directly take your home, but here’s how the risk works:
If you apply for Medi-Cal to cover nursing home care, California may place a recovery claim on your estate after your death.
This means your house may need to be sold to reimburse the state unless it was properly protected during your lifetime.
If no Medi-Cal is used, your home is not at risk from state claims.
🛡️ 5 Proven Ways to Protect Your Home From Nursing Home Costs
✅ 1. Use a Revocable Trust to Remove Your Home from your Estate
Placing your home into a revocable trust can protect it from estate recovery:
The home is removed from your probate estate
The state cannot recover it after death if it’s held in the trust.
✅ 2. Transfer Your Home to a Spouse or Disabled Child
California allows certain transfers that are exempt from recovery, including:
To a spouse
To a disabled or blind child
To a child caregiver who lived in the home and provided care
✅ 3. Create a Life Estate or Right of Occupancy
A life estate lets you:
Keep the right to live in your home for life
Pass the home to your heirs upon death
Avoid probate in many cases
However, a life estate doesn’t offer as much protection as a revocable trust .
✅ 4. Avoid Probate With Proper Estate Planning
Estate recovery only applies to assets subject to probate. You can avoid this by:
Using revocable or irrevocable trusts
Designating beneficiaries on bank accounts and real property
Holding title as joint tenancy with right of survivorship
✅ 5. Understand What Assets Are Exempt During Your Lifetime
Medi-Cal does not count your primary residence as an asset while you’re living there or intend to return. But without proper planning, the home becomes vulnerable after your death.
⚠️ Common Mistakes to Avoid
Transferring your home outright to children (may cause tax issues and make it subject to their creditors)
Failing to update your estate plan to reflect Medi-Cal laws
🧾 Does This Apply If I Already Live in a Nursing Home?
If you're already receiving long-term care, options are more limited—but not impossible. You may still be able to:
Transfer the home under specific exemptions
Petition for a hardship waiver
Convert your estate into exempt resources
Every case is different—legal advice is essential at this stage.
🏁 Final Thoughts
Your home is likely your most valuable asset—and it can be protected with the right legal tools. Don't wait until it's too late. If you or a loved one may need nursing home care in the future, now is the time to prepare.
Contact Moravec, Varga & Mooney today for a personalized Medi-Cal asset protection plan that keeps your home safe for your heirs.
Comments