Will Minnesota Take the House to Pay for Nursing Home Care?

Worried about paying for care or protecting a family home? Lauren Pevehouse Law helps Minnesota families understand estate planning and the questions to raise when long-term care is on the horizon. Call 651-800-1030 or email lauren@laurenpevehouselaw.com to discuss your situation.

A move to a nursing home can bring an urgent question: Will the state take the house? The short answer is not simply because someone enters a nursing home. But if Minnesota Medical Assistance (MA) pays for certain long-term care, the state may later seek repayment from the person's estate. Whether a home counts for eligibility, whether a lien can arise, and whether estate recovery is allowed are different questions. Minn. Stat. § 256B.056, subds. 2–2a; Minn. Stat. § 256B.15, subds. 1a, 2.

Does owning a house prevent Medical Assistance from paying for nursing home care?

Not necessarily. Minnesota can exclude a homestead from the asset calculation while a person is in a long-term-care facility, including during the first six calendar months of the stay and, after that, when the person can reasonably be expected to return home or when a qualifying family member uses it as a primary residence. A separate, annually adjusted home-equity limit can apply to MA payment for long-term-care services; an exception applies when a spouse or qualifying child lawfully lives in the home. The exclusion and equity limit depend on the facts—not just the name on the deed. Minn. Stat. § 256B.056, subds. 2–2a.

For many people whose MA eligibility is based on age 65 or older or disability, Minnesota's countable-asset limit is $3,000 for an individual. Different household and spousal rules can apply, and some assets are excluded. Do not assume that the home's value must fit within the $3,000 countable-asset limit. Minn. Stat. § 256B.056, subds. 1a, 3; Minn. Stat. § 256B.059.

What is Minnesota's five-year lookback?

When someone asks MA to pay for nursing-facility care or qualifying home- and community-based long-term care, the agency can review transfers made during the 60 months before the relevant request. Giving away the house or selling it for less than fair market value can cause a period during which MA will not pay for long-term-care services. This is not a rule requiring everyone to transfer a house five years ahead of time. Specific exceptions exist, including certain transfers to a spouse, a qualifying child, a sibling with an equity interest, or an adult child who provided qualifying care. The details matter; speak with a Minnesota elder-law attorney before signing a deed. Minn. Stat. § 256B.0595, subds. 1, 3–4.

Can I spend down assets to qualify?

“Spend down” does not mean giving assets away. It may mean using available funds for care or other legitimate expenses while complying with MA rules. Minnesota also has specific rules for reducing excess assets and for qualifying with excess income after medical expenses. A spouse living in the community may be entitled to retain an asset allowance under separate rules. Ask for an individualized eligibility review before moving money or paying relatives for care. Minn. Stat. § 256B.056, subds. 3d, 5; Minn. Stat. § 256B.059, subds. 2–5; Minn. Stat. § 256B.0595, subd. 1(d).

What is the Elderly Waiver?

Minnesota's Elderly Waiver can fund eligible home- and community-based services for people age 65 or older who meet MA requirements and are assessed as needing nursing-facility-level care. It is an option to ask about when someone wants to remain in the community rather than move into a nursing facility. Waiver services can also be relevant to later estate recovery, so do not assume home-based care removes that issue. Minnesota DHS, Elderly Waiver; Minn. Stat. § 256S.05, subds. 1–2; Minn. Stat. § 256B.15, subd. 2.

When can Minnesota seek repayment from an estate?

Minnesota estate recovery is different from deciding whether a person qualifies for MA. For recipients 55 or older, recoverable costs generally include MA-paid nursing-facility services, home- and community-based services, and related hospital and prescription-drug services. The law also addresses certain people institutionalized for an extended period, so it is not accurate to say recovery applies only to people age 55 or older. Minnesota defines the estate broadly for this purpose, potentially including some property that passes outside probate. A transfer-on-death deed or living trust is not, by itself, a guaranteed way around recovery. Minn. Stat. § 256B.15, subds. 1a, 2.

A surviving spouse or qualifying child can delay recovery, but delay is not necessarily forgiveness. The rules distinguish a claim or lien being recorded from the state actually collecting it; they also include protections for certain relatives living in the home. Review the particular claim, ownership history, and occupants before deciding that the house must be sold—or that it is completely protected. Minn. Stat. § 256B.15, subds. 1i–1j, 3–4; 42 U.S.C. § 1396p(b)(2).

A Notice of Estate Claim arrived. What should the family do?

Do not ignore it—and do not assume the claim is automatically correct. Find the date on the notice, read the instructions and deadlines printed on it, and gather the deed, probate papers, MA notices, and any evidence that a spouse, qualifying child, sibling, or caregiver lived in the home. Minnesota requires notice to explain how to request an undue-hardship waiver, the time frames for applying, and appeal rights. A claim may be waived in whole or part if the applicable hardship standard is met. The statute does not itself set a universal “30 days from the notice” deadline for the initial hardship application; follow the deadline on the actual notice and seek prompt advice. An appeal after a waiver denial is a separate step. Minn. Stat. § 256B.15, subds. 1a(f), 5; Minnesota DHS, estate recovery.

Quick answers

Can a nursing home take my house in Minnesota? A nursing home stay does not automatically transfer ownership of the house. But paying for care and a later MA estate-recovery claim are separate matters; the home's eligibility treatment does not guarantee that its value is beyond later recovery. Minn. Stat. § 256B.056, subds. 2–2a; Minn. Stat. § 256B.15, subds. 1a, 2.

Does the five-year lookback mean I cannot sell my home? No. The key question is whether a transfer was for less than fair market value, and whether an exception applies. Get advice before a sale, gift, or change of title. Minn. Stat. § 256B.0595, subds. 1, 3.

Will having a spouse at home protect the house forever? Not necessarily. A spouse's residence can matter for eligibility and can delay recovery, but estate-recovery rules may later apply after the spouse dies. Minn. Stat. § 256B.056, subds. 2–2a; Minn. Stat. § 256B.15, subds. 1a, 1i.

What if a family member cared for the parent at home? Caregiving may matter under narrow home-transfer or estate-recovery provisions, but living in the home alone is not enough. Keep records of residence and care, and get the specific legal requirements reviewed. Minn. Stat. § 256B.0595, subd. 3; Minn. Stat. § 256B.15, subd. 4.

Plan before a crisis—and respond quickly to a claim

Whether you are planning for a possible nursing-home stay or have just received an estate-recovery notice, the right answer depends on the person's care needs, marital status, assets, title to the home, and timing of past transfers. Contact Lauren Pevehouse Law at 651-800-1030 or lauren@laurenpevehouselaw.com to discuss Minnesota estate-planning questions and whether your family also needs specialized Medical Assistance eligibility or estate-recovery counsel.

This article provides general Minnesota information, not a determination of eligibility or advice about any particular estate claim. Program amounts and forms can change; confirm current figures and deadlines with Minnesota DHS and the notice you received.