Can You Own a Home in Michigan and Still Qualify for Medicaid?

For many Michigan families, the home is their most important asset, financially and emotionally. When long-term care becomes necessary, one of the first questions people ask is: “If I own a home, can I still qualify for Medicaid?”

The short answer is yes, in many cases, you can own a home and still be approved for Michigan Medicaid long-term care benefits. But the longer answer is more nuanced, and misunderstanding the rules can put your home at risk later.

This guide explains how Michigan Medicaid treats your home, what happens after you qualify, and how proper planning can protect your property.

Medicaid Eligibility vs. Estate Recovery: Two Different Rulebooks

One of the biggest misconceptions is believing that if Medicaid approves you, your home is automatically protected forever. That’s not true.

Michigan uses two separate sets of rules:

1. Eligibility Rules (While You’re Alive)

These determine whether you qualify for Medicaid long-term care. Under Michigan’s eligibility rules:

· Medicaid reviews your income and countable assets.

· Your primary residence is usually treated as an excluded (non-countable) asset.
· This means you can often qualify for Medicaid without selling your home.

2. Estate Recovery Rules (After You Pass Away)

After death, Michigan is required to seek repayment for long-term care benefits paid on your behalf. This can include:

· Your home
· Bank accounts
· Other probate assets

This is where families are often caught off guard. Eligibility protects the home during life. Estate recovery applies after death unless planning is done.

When Your Home Is Excluded for Medicaid Eligibility

Michigan Medicaid generally treats a home as an exempt asset if certain conditions are met:

You may keep your home and still qualify if:

· It is your primary residence.
· You intend to return home, even if you’re living in a nursing facility.
· Your home equity is within Michigan’s allowed limits.

Michigan’s 2026 guidance places the home-equity cap around $752,000, above which the home could become countable.

If your home meets these criteria, Medicaid cannot force you to sell it to qualify. This allows families to:

· Access long-term care
· Maintain stability
· Avoid immediate financial disruption

But this protection is not permanent; it applies only during your lifetime.

What Happens After Death: Michigan Estate Recovery

Once a Medicaid recipient passes away, Michigan may attempt to recover long-term care costs from the estate. Estate recovery applies only to assets that pass through probate.

This means your home may be at risk if:

· It is still titled in your name at death.
· It passes through probate.

· No planning tools were used to transfer it outside the probate estate.

However, Michigan law provides several protections:

· Surviving spouse
· Child under 21
· Blind or disabled child
· Qualifying resident sibling
· Caregiver child

· Hardship waivers for low-income families

Tools That Can Protect the Home From Recovery

Michigan recognizes several non-probate transfers that typically avoid estate recovery:

· Lady Bird Deeds (Enhanced Life Estate Deeds)
· Joint tenancy with rights of survivorship
· Transfer-on-death or payable-on-death designations
· Properly structured trusts

These strategies allow the home to pass directly to heirs outside of probate, placing it beyond the reach of Michigan’s recovery program.

Common Errors That Put Your Property at Risk During Long-Term Care Planning

Even though the home is often exempt, families can unintentionally jeopardize eligibility or trigger penalties:

1. Transferring the Home Within the 5-Year Look-Back

Improper transfers can cause long periods of Medicaid ineligibility.

2. Incorrect Titling or Joint Owners

Titling a property in a trust or in joint ownership can convert an exempt home into a countable asset or can result in a penalty. It may be advisable to do so anyway in certain circumstances, but it should only be done upon the advice of a qualified elder law attorney.

3. Assuming Approval Means Permanent Protection

Eligibility protects the home now. Estate recovery affects the home later.

4. Failing to Plan Early

Many strategies, especially Medicaid Asset Protection Trusts, must be implemented before the need for care.

Can You Own a Home and Still Qualify for Medicaid in Michigan?

Yes, in most cases, you can. Michigan Medicaid generally excludes your primary residence from the asset test, allowing you to qualify for long-term care benefits without selling your home. But without proper planning, your home may be vulnerable later.

Estate recovery can claim the home after death unless steps are taken to transfer it outside probate.

How David Waterstradt Helps Protect Your Home

Michigan Medicaid rules are complex, and the difference between eligibility and estate recovery is where most families lose their homes unintentionally.

Attorney David Waterstradt helps clients:

· Determine whether their home is exempt
· Structure ownership to avoid penalties
· Use Lady Bird deeds or trusts to bypass probate
· Protect a spouse or disabled child living in the home
· Avoid estate recovery

· Navigate the 5-year look-back safely
· Apply for Medicaid without unnecessary spend-downs

With the right strategy, you can qualify for Medicaid, receive the care you need, and protect your home for your family.

Ready to Protect Your Home in Muskegon & Western Michigan Areas?

If you or a loved one is preparing for long-term care, now is the time to get clear guidance with Medicaid planning. Serving Muskegon, Grand Rapids, Grand Haven, and Norton Shores, David Waterstradt, Attorney at Law, can help you avoid costly mistakes and take steps to protect your home and family’s future. Contact our office to discuss your options and plan for the road ahead.