Medicaid estate recovery: can Medicaid take the house after death?

General information, not legal, tax or financial advice. Last reviewed Oct 30, 2026.

Quick answerIt can. Federal law requires every state to seek repayment from the estate of a Medicaid enrollee who was 55 or older for nursing home care, home and community-based services and related hospital and drug costs. But a state can’t recover while a surviving spouse is alive, or if there is a surviving child under 21 or a blind or disabled child of any age, and it must have a hardship waiver process. Whether a house that passed outside probate can be reached depends on the state.

Who is subject to recoveryFederal law

Anyone who was 55 or older when they received Medicaid, for nursing facility services, home and community-based services, and related hospital and prescription drug services. A state may choose to recover for other Medicaid services too, except Medicare cost-sharing.
Permanently institutionalized people of any age, from the estate or when property under a Medicaid lien is sold.

Mandatory recovery for people 55 or older and for permanently institutionalized people; optional recovery for other services. Source: 42 U.S.C. § 1396p(b)(1), checked Oct 30, 2026.

When the state must wait or can’t recoverFederal law

Surviving spouse: no recovery until after the spouse dies.
Children: no recovery while there’s a surviving child under 21, or a child who is blind or disabled.
Home under a Medicaid lien: not while it is lived in by a sibling who lived there at least 1 year before the person entered the institution, or by a son or daughter who lived there at least 2 years before and provided care that kept the parent at home, as long as they have lived there continuously since.
Undue hardship: every state must have a process to waive recovery if it would cause undue hardship.

Deferral for a surviving spouse and certain children; sibling and caregiver-child protections; undue-hardship waivers. Source: 42 U.S.C. § 1396p(b)(2)–(3), checked Oct 30, 2026.

Does it reach property outside probate?Federal + state

At a minimum, the “estate” is what passes through probate under state law. A state may choose a broader definition that includes property the person had an interest in at death that passed through joint tenancy, survivorship, a life estate, a living trust or another arrangement.

Definition of estate: probate property, plus optional nonprobate property. Source: 42 U.S.C. § 1396p(b)(4), checked Oct 30, 2026.

State	What we verified	Law
California	For deaths on or after Jan. 1, 2017, recovery is limited to the probate estate and to services federal law requires. No claim if there’s a surviving spouse or registered domestic partner, a child under 21, or a blind or disabled child. The state must waive its claim for a homestead of modest value (worth 50% or less of the county’s average home price), subject to federal approval. Members can ask once a year how much may be recoverable, for a fee of no more than $5.	Welf. & Inst. Code § 14009.5
Ohio	Ohio uses the broader definition: the estate includes probate property and other property the person had an interest in at death, including property passing by joint tenancy, survivorship, life estate or living trust.	Ohio Rev. Code § 5162.21
New Hampshire, Texas, Florida	Not yet verified. We couldn’t confirm these states’ rules from official sources today.

Checked Oct 30, 2026.

If you get an estate recovery letter

Check the person’s age when they got Medicaid and which services the claim covers.
Ask the state for an itemized statement of the claim.
Tell the state about a surviving spouse, a child under 21, or a blind or disabled child.
If a sibling or caregiver child lives in the home, say so right away.
Ask how to apply for an undue-hardship waiver and note the deadline.
Talk to an elder law attorney before selling or transferring the house.

Planning ahead: giving the house away to avoid recovery can trigger a Medicaid penalty. See the Medicaid 5-year look-back.

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