Will Medicare or Social Security Take My Parents’ Property If They're Placed in a Care Facility?

At The Black Firm, concerned family members often ask what might happen to a loved one's property if they are placed in a care facility. One recent client question stood out because it's something many people are unclear about:

“Will my parent’s home or assets be taken by Social Security or Medicare if they’re admitted into a care facility?”

It's a great question—and an important one. Let's break it down.

Medicare vs. Medicaid: Know the Difference

A lot of the confusion comes from mixing up Medicare and Medicaid, two government programs with very different rules.

Medicare

• A federal health insurance program mainly for individuals aged 65 and older.

• It typically covers short-term medical needs, such as hospital stays and rehabilitation after an injury.

• Does not have estate recovery provisions.

• Medicare will not take your home or come after your assets.

However, if your loved one requires long-term care, Medicare won't cover all those expenses. That's where out-of-pocket costs often come into play.

Social Security

• Social Security benefits are payments made to retirees and individuals with disabilities.

• These benefits are yours or your loved one's to use and do not trigger estate recovery.

• In some cases, Social Security income may go toward private-pay care facility costs, but it won't result in a claim against your estate.

What About Medicaid?

This is where things change significantly.

Medicaid does have estate recovery provisions. If your parent or loved one receives long-term care through Medicaid, the state can seek repayment from their estate after they pass away. This often includes:

• The family home

• Other real estate

• Financial accounts

This process is called estate recovery, and it's the state's way of recouping funds used for long-term care.

How Can You Protect Your Family's Property?

If you're worried about Medicaid estate recovery, speak with an estate planning or Medicaid planning attorney as early as possible. There are legal strategies to help protect assets—including homes—from being taken during the estate recovery process.

At The Black Firm, we handle estate and Medicaid planning and can walk you through the best steps to protect what matters most to your family.

Key Takeaways

• Medicare and Social Security will NOT take your property.

• Medicaid can recover costs from your estate if long-term care was paid for.

• Talk to an estate planning attorney to explore protective options.

If you or a loved one faces these questions, don't wait until it's too late. Contact The Black Firm today to schedule a consultation and take the first step in protecting your legacy.