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Long-term care in New York is expensive. If you or a loved one needs nursing home care, the cost can reach $150,000 or more each year. Many families worry they’ll lose their home or be forced to sell property just to qualify for Medicaid. But you don’t have to wait until there’s a crisis. With the right plan in place, you can protect your home, keep your options open, and avoid unnecessary financial stress. At Sverdlov Law, we help New Yorkers plan ahead and protect what matters most without giving up control.
What Long-Term Care Means for Your Home
Many people are surprised to learn that Medicare does not cover long-term nursing home care. Medicaid does, but only if you meet specific financial requirements. While your home is generally exempt from Medicaid’s asset limit during your lifetime, it is not exempt from Medicaid’s Estate Recovery Program. After you pass away, the state can seek repayment for the care it covered, often by placing a lien on your home.
Without proper planning, your family may be forced to sell the property to satisfy that claim. The good news is you can avoid this outcome. With tools like an irrevocable trust, you can protect your home from estate recovery and ensure it stays in your family.
Understanding the 5-Year Lookback Rule and When It Applies
In New York, the five-year lookback period is a key rule for those applying for Medicaid to cover nursing home care. When someone applies for this type of long-term care, Medicaid reviews any asset transfers made within the past five years. If you transferred your home or other property during that time, it could trigger a penalty period where you are ineligible for benefits, even if you otherwise qualify.
It should be noted that this rule does not apply to Community Medicaid, which includes services like:
- In-home care
- Personal aides
- Adult day care programs
Currently, there is no lookback period for these services in New York. That makes it possible to plan more flexibly if you or a loved one needs care at home rather than in a facility. Still, advanced planning is the best way to protect your home and ensure access to care when you need it.
Protecting Your Home with an Irrevocable Medicaid Asset Protection Trust
One of the most effective tools we use is a Medicaid Asset Protection Trust (MAPT). This type of trust lets you move your home—whether it’s a single-family house, condo, or co-op—out of your countable assets while still keeping certain rights.
When you place your home in a MAPT, you can still:
- Decide who lives in the home
- Choose a trustee you trust to manage the property
- Receive income if the property is rented out
Because the trust is irrevocable, you can’t easily change it or reclaim ownership. That’s what makes it effective for Medicaid planning. Once five years have passed, the home is no longer counted if you apply for nursing home Medicaid, and it won’t be subject to estate recovery after your death.
Additional Ways to Protect Your Home
While a trust is often the most comprehensive approach, there are other strategies that may fit your goals:
- Life estate deed – lets you stay in your home while giving ownership to your heirs.
- Caregiver child exception – allows you to transfer the home to a child who lived with you and provided care for at least two years.
- Long-term care insurance – helps cover costs and reduce reliance on Medicaid.
Each option comes with pros and cons. We’ll help you decide what works best for your situation, based on your health, family structure, and financial goals.
Why It’s Important to Work With an Attorney
Long-term care planning involves more than just transferring assets. If the timing is off or the documents aren’t prepared correctly, you could lose eligibility for Medicaid or put your home at risk. That’s why it’s important to work with an attorney who understands New York’s Medicaid rules and estate planning strategies.
At Sverdlov Law, we take the time to understand your full financial picture and family goals. Whether you own a single-family home, condo, or co-op, we’ll help you choose the right legal tools and explain how each one works. With proper legal guidance, you can avoid common pitfalls and feel confident that your home and future care needs are being handled the right way.
Talk to Sverdlov Law About Protecting Your Home
If you’re worried about long-term care costs and want to protect your home for the next generation, now is the time to start planning. At Sverdlov Law, we help individuals and families throughout New York take clear, strategic steps to secure what they’ve worked hard to build. Contact us today to schedule a consultation and find out how we can help you protect your home without giving up control or peace of mind.