(Note the following applies to Michigan Medicaid long term care services and supports only. Call for a referral for your state.)
Does Medicaid take the house? Or the bank account? The answer is “no.” And “yes.”
On application Medicaid does not come out and take anything. You have to go to the Medicaid office. You have to prove you are eligible. In 2026 the single applicant can have exempt/excluded assets plus $9,950 in countable assets. Countable assets are those that can be reduced to cash within 30 days. To be eligible you must prove you have spent your cash assets down to $9,950
Since the house is excluded you do not have to get a mortgage or sell it. The contents are exempt too, You don’t have to have a garage sale. A car is exempt and that includes a new(er) car purchased as part of your “spend down.”
On death of the Medicaid recipient, Michigan has Medicaid Estate Recovery which means the state will try to collect the entire amount of payments made by Medicaid including payments all medical services provided including nursing home, hospital services and prescriptions. The cost can be in the hundreds of thousands dollars.
If you are so inclined you may find those provisions in Michigan Compiled Laws (MCL) 400.112. Take note that the state may only recover if there is probate of the recipient’s estate. If the recipient, avoided probate then there will be no Michigan Medicaid Estate Recovery. Note however that the state will send out a form demanding information for payment of benefits received. Ignore the form.
Avoiding estate recovery is part of the Medicaid planning process. Have a Certified Elder Law Attorney review your plans and put together comprehensive estate planning and Medicaid planning
Give us a call at 248-356-3500 for a good referral.
Jim