How to Protect Your Family Home from Ohio’s Medicaid Estate Recovery

One of the most challenging aspects of growing older is planning for long-term care while also preserving the assets you've worked so hard to accumulate throughout your lifetime, including your family home.

Because your family home is not just a house. It’s your legacy and it’s filled with many heartfelt memories.

But when life takes an unexpected turn and you or your loved one needs Medicaid assistance for nursing home care in Ohio, Medicaid may step in to help. This program might feel like a lifeline—but only until you learn that it puts your family home at risk after you pass away.

At the Law Offices of Miller & Miller, P.C., we know all about Ohio’s Medicaid Estate Recovery and have helped countless families throughout the state safeguard their family homes.

If you need help with a plan focused on protecting your family’s inheritance, our team is here to help. Call 313-386-1400 to get answers to your questions and immediate guidance.

What Is Ohio’s Medicaid Estate Recovery?

Let’s start with the basics. Ohio’s Medicaid Estate Recovery program is a state-run effort to get back some of the money it spends on people’s healthcare, especially long-term care like nursing homes or in-home services.

Medicaid is a godsend for many as it helps cover costs when savings run dry, and it’s there for people who need it most. But here’s the catch: it’s not a free ride. The federal government requires states to try to recover those costs after someone passes away. In Ohio, that often means going after the person’s estate, including their family home.

Think of it like a loan you didn’t know you signed up for. Sure, you get the care you need, but after you’re gone, the state taps your family on the shoulder and says, “Hey, we’d like that money back.”

How Does It Work?

When someone who received Medicaid benefits passes away, here's what typically happens in Ohio:

• The state is notified of the death
• Ohio's Medicaid Estate Recovery Unit identifies what assets remain in the person's name
• They file a claim against the estate for the amount of benefits paid
• This claim must be paid before heirs receive their inheritance

In Ohio, the recovery process can include any assets that pass through probate. The biggest asset for most families is their home. If your house is solely in your name when you pass away, it becomes part of your probate estate—meaning the state can force its sale to recover Medicaid costs.

What's particularly heartbreaking is that many families don't learn about these rules until it's too late.

Who Should Be Worried About Medicaid Estate Recovery?

Now, you might be wondering, “Does this apply to me?” Let’s break it down. If you or a loved one is on Medicaid (or might need it someday) this could affect you. Specifically, Ohio targets two groups:

1. Anyone on Medicaid for long-term care, no matter their age. If you’re in a nursing home or getting home-based care, your estate is fair game after you pass.
2. Anyone 55 or older who’s used Medicaid for any covered services. Even if it’s just doctor visits or prescriptions, the state can try to recover those costs once you’re gone.

If you own a home, this should be on your radar. The average Ohioan isn’t exactly sitting on a pile of cash. Your house might be your biggest asset, the thing you most want to pass down. But Medicaid doesn’t care about sentimentality. They see this program as a way to balance their books.

Strategies to Protect Your Family Home from Medicaid Estate Recovery in Ohio

Here’s the good news though: There are ways to shield your home from Ohio’s Medicaid Estate Recovery program, though many of them may require advance planning and assistance from an attorney.

1. Transfer the Home Early

One option is to give your home to your kids or a trusted loved one before you need Medicaid. If you transfer it at least five years before applying (thanks to Medicaid’s “look-back” period), the state can’t touch it. Timing is everything here, though—wait too long, and you could get caught in that five-year window, leaving the transfer undone.

2. Use a Trust

Trusts are like a safe deposit box for your home. A properly set-up irrevocable trust can take the house out of your estate, meaning Medicaid can’t claim it later. You’d give up control, but the trade-off is peace of mind. However, trusts need to be tailored to Ohio’s rules and Medicaid’s requirements to make them a powerful tool.

3. Leverage a Caregiver Exception

If your child lived with you for at least two years before you needed care and helped keep you out of a nursing home, they might be able to keep the house. Same goes for a sibling who’s been there for a year before you went into care. It’s a reward for their love and support—proof they earned the right to stay.

4. Add a Co-Owner with Survivorship Rights

Putting your spouse or child on the deed as a joint owner with rights of survivorship can work, too. When you pass, the home goes straight to them, bypassing your estate entirely. Ohio’s expanded recovery rules might still try to snag your share, but with smart planning, you can minimize what’s at risk. It’s a simple move that can make a big difference.

5. Apply for an Undue Hardship Waiver

If the worst happens and the state comes after your home, your family can ask for a break. An “undue hardship waiver” lets them argue that losing the house would leave them in a bad spot—like if it’s their only income source (say, a family farm) or if they’d end up on public assistance without it.

Take Action Today to Protect Your Family Home

The best time to protect your family home? It’s now, before any health crisis occurs. Losing your home to Medicaid Estate Recovery is a risk you can manage but it starts with developing a plan. Not sure what to do about it in your specific situation? Reach out to the Law Offices of Miller & Miller, P.C., for a consultation. Call at 313-386-1400 or fill out our contact form.