For many Massachusetts residents, their home represents their most valuable asset and a legacy they hope to pass on to future generations. However, when applying for Massachusetts’ Medicaid program (MassHealth) to cover long-term care costs, many are surprised to learn that their home may be at risk due to a potential MassHealth’s lien or estate recovery.
Understanding MassHealth Liens
What is a MassHealth Lien?
When you receive MassHealth benefits for long-term care (nursing home), the agency can place a lien against your home. This lien gives MassHealth the authority to recover payments that have been made for your care if the property is sold while you are still alive, or after you pass away.
When Can MassHealth Place a Lien?
MassHealth can place a lien on any real property in Massachusetts in which you have a legal interest, including:
- Property you own solely
- Property you own jointly with others
- Property in which you hold a life estate
It’s important to understand that even partial ownership interests may be subject to liens, including joint tenancy arrangements and life estates.
When to Start Planning
It is never too early to begin planning for potential long-term care needs. Starting the process early is ideal. The first step is to consult both an elder law attorney and financial planner to develop a strategy tailored to your specific situation.
Given the complexity of MassHealth regulations and the significant value of your home, working with an experienced elder law attorney who specializes in MassHealth planning is highly recommended. There are strategies that can be used to protect your home and assets and avoid a MassHealth lien and/or estate recovery. They can help you navigate the various options and implement the most effective strategy to protect your home while ensuring you receive the care you need.
Remember that proper planning not only helps preserve your assets for your loved ones but can also provide peace of mind during challenging times.
Founded by a nurse attorney and with offices in Acton, Andover, and Sudbury, Massachusetts, Generations Law Group helps individuals and families navigate the complex areas of estate planning and elder law to inform and protect loved ones of every generation.
Disclaimer: This article is provided for informational purposes only and should not be construed as legal advice. Laws and regulations regarding MassHealth and Medicaid can change, and every situation is unique. Please consult with a qualified elder law attorney to discuss your specific circumstances.
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