Can I Keep My Home if I Go Into a Nursing Home?

 Posted on April 21, 2026 in Elder Law

Moving into a nursing home is a major life transition. Even if they aren’t living in it anymore, many elderly people want to know if they’ll be able to maintain ownership of their home if they’re in a Medicaid-sponsored nursing facility. This may be because they want family to assume ownership of it or because of the value it holds. In any case, it’s important to understand what the law says about continued ownership when you leave your home.

If you’re planning on making the move to a nursing home in 2026, a Denton County elder law attorney can help you understand whether your house is at risk or not.

Does Medicaid Require You To Sell Your Home To Pay for Nursing Home Care?

Nursing home care is expensive, often running thousands of dollars per month. Many people can't afford it without help from Medicaid, which will cover long-term care costs for those who qualify, including assisted living, like nursing homes.

When you apply for Medicaid, the state looks at your assets to determine whether you qualify. Your home is generally considered an exempt asset during your lifetime, meaning it won't disqualify you from Medicaid eligibility as long as certain conditions are met.

Under Texas Medicaid rules, your home is exempt if:

• You intend to return to it, even if that return is uncertain.
• Your spouse still lives in it.
• A dependent child or disabled child lives in it.
• A sibling with an equity interest in the home lives in it.

If none of these apply and you no longer plan to return, the home could be counted as an available asset. This is where planning ahead is important.

What Does Medicaid Do with Your Home After You Pass Away?

Even if Medicaid doesn't require you to sell your home while you're alive, the state may try to recover what it spent on your care from your estate after you die. This is called Medicaid Estate Recovery, and it can include the sale of your home.

This recovery of assets is mandated under federal law (42 U.S.C. § 1396p), but there are some protections. Recovery is typically delayed if a surviving spouse, minor child, or disabled child is living in the home. Once those protections no longer apply, the state's claim can become active.

This is one of the strongest arguments for working with an elder law attorney before getting into a nursing home becomes urgent. Proper planning, including the use of certain trusts or transfers, can help protect the home for your heirs. Texas has a five-year look-back period for Medicaid. This means that transfers made within five years of applying for Medicaid could be penalized or reversed. This makes planning before the need for outside care, like a nursing home, even more important.

Are There Legal Strategies That Can Help Protect Your Texas Home from Medicaid Recovery?

An elder law attorney may be able to use one of several options based on your situation.

Spousal Protections

If you're married, your spouse's right to remain in the home is well-protected under both federal and Texas Medicaid rules. The home won't be touched during your spouse's lifetime.

Caregiver Child Exemption

If an adult child lived in your home for at least two years before you moved into a nursing facility and provided care that delayed the need for institutionalization, they may be able to keep the home. This is called the caregiver child exemption.

Irrevocable Trusts

Placing your home in an irrevocable trust well in advance of needing care can remove it permanently from your countable assets and from your estate. This option takes proactive planning and must be done as early as possible, given the five-year look-back period.

Call a Flower Mound, TX Elder Law Attorney Today

Protecting your home while navigating nursing home costs isn’t something to take on without experienced legal counsel. Making sure the proper boxes are checked at the right times is vital to ensuring your home is actually protected long-term. Our Denton County elder law lawyer brings over years of experience to these cases, including having served as an administrative law judge and as a tribal judge for the Chickasaw Indian Nation. Call Colbert Law Group PLLC at 972-724-3338 to schedule your initial consultation.