The Question That Keeps Families Up at Night
Can a nursing home take your house in Ohio?
I’ve had this exact conversation with hundreds of families over my 25 years buying homes across Ohio. Usually, it happens after Mom or Dad has already moved into skilled care, the bills are piling up, and someone finally Googles “Medicaid estate recovery Ohio” at 2 AM.
Here’s the truth: No, a nursing home can’t directly take your house. But the state of Ohio absolutely can—and will—come after it once the dust settles.
And by the time most families figure this out, they’ve already lost thousands in equity to legal fees, estate recovery liens, and drawn-out probate battles.
After handling over 1,700 transactions—many involving inherited homes tied up in Medicaid recovery—I’ve learned there’s a hard way and a smart way to handle this situation.
What Actually Happens to Your House When Medicaid Pays the Bills
Let’s cut through the legal jargon.
When someone qualifies for Medicaid to cover nursing home costs, Ohio doesn’t make them sell the house upfront. That’s the good news.
The bad news? Ohio Medicaid Estate Recovery Program (ORC § 2117.061) kicks in after death. The state files a claim against the estate to recover every dollar they paid for care. If the house is still in the estate, they’ll go after it.
I’ve watched this play out dozens of times:
- Mom enters nursing home, qualifies for Medicaid
- House sits empty for 2-4 years while she’s in care
- Mom passes away
- Family starts probate
- State files recovery claim against the estate
- House must be sold to satisfy the lien
- Family gets whatever’s left after estate recovery, attorney fees, probate costs, and back taxes
Real Cost Breakdown on a $150,000 Home:
- Medicaid estate recovery claim: $120,000 (3 years of care at $40K/year)
- Probate attorney fees: $6,000
- Back property taxes (3 years): $9,000
- Realtor commission (6%): $9,000
- Repairs/clean-out: $8,000
- Family’s Net Inheritance: $0 (and sometimes they still owe money)
I’ve bought dozens of homes in exactly this situation. The families are exhausted, broke, and just want it to be over.
If that’s you right now, let me take this weight off your shoulders.
I’ll give you a fair cash offer in 24 hours—no repairs, no realtor fees, no waiting. We can close in as little as 7 days, or on your timeline if you need more time to plan.
Just tell me about your property below, and I’ll run the numbers today:
Sell Your Dayton House Fast For Cash
The Hard Way vs. The Smart Way
Here’s how most families handle nursing home situations versus how the families who call me handle it:
| The Hard Way (Traditional Route) | The EZ Sell Way (Cash Offer) |
|---|---|
| Wait 2-4 years while house sits empty | Sell the house before or shortly after care placement |
| Pay property taxes on vacant home ($3K+/year) | No carrying costs—we close fast |
| Apply for Medicaid with house as exempt asset | Use sale proceeds to private-pay or create compliant spend-down |
| Hope the house maintains value while empty | Lock in current market value immediately |
| Deal with estate recovery lien after death ($40K-$150K+) | Avoid estate recovery entirely—no house in estate |
| Hire probate attorney ($5K-$15K) | No probate needed on the house |
| List with realtor, make repairs, wait for buyer | Sell as-is for cash—close in 7-14 days |
| Split diminished proceeds after all fees and liens | Maximize what’s available for care or family |
| Process takes 18-36 months after death | Done in under 2 weeks |
The families who call me early—before Medicaid kicks in or right after placement—consistently walk away with $30,000 to $80,000 more than families who wait until after death and let the state take first position.
Case Study: The Dayton Duplex Nobody Wanted to Touch
Last year, I got a call from Linda in Kettering. Her dad had just moved into a nursing home in Dayton, and the family was applying for Medicaid. Dad owned a duplex on the east side—nothing fancy, maybe worth $95,000 on a good day. One unit was rented, the other was a mess.
Linda’s attorney told her the house was “exempt” for Medicaid purposes and not to worry about it. Technically true. But here’s what that attorney didn’t explain:
What Linda Was About to Face:
- 3+ years of managing a rental property while Dad was in care
- Property tax and insurance: $3,200/year = $9,600 total
- Ongoing maintenance and tenant issues
- After Dad’s death: Medicaid recovery claim of $136,000
- Duplex appraises at $95,000
- The entire property goes to the state
- Family inherits nothing
Instead, Linda called me.
What We Did:
- I made a cash offer of $87,000 as-is (no repairs, no tenant eviction)
- Closed in 10 days
- Linda used $50,000 to private-pay Dad’s care for 15 months, then transitioned to Medicaid
- Remaining $37,000 was spent down on prepaid funeral, medical equipment, and family support (all Medicaid-compliant)
- When Dad passed 2.5 years later, there was no house in the estate
- No estate recovery claim. No probate on real estate.
- Family kept the memories, avoided the debt, and Dad got better care.
Linda’s words: “I thought we were doing the right thing keeping the house. Mike showed me the math, and I realized we were actually setting ourselves up to lose everything. Selling to him wasn’t just smart—it saved us from a nightmare.”
The Legal Stuff You Need to Know (But Shouldn’t Have to Navigate Alone)
Look, I’m not an attorney, and I always tell families to talk to one who specializes in elder law. But after 25 years, I know exactly how Ohio’s estate recovery laws work in practice.
Ohio Medicaid Estate Recovery (ORC § 2117.061)
When someone dies after receiving Medicaid long-term care, the state has 90 days to file a claim against the estate. They will recover:
- The full cost of nursing home care paid by Medicaid
- They get paid before almost anyone else (super-priority creditor status)
The 5-Year Look-Back Period
If you try to “gift” the house to your kids to protect it, Medicaid looks back 5 years. Any transfer during that window triggers penalties and delays eligibility. I’ve seen families stuck with $200K in private-pay bills because they tried a DIY transfer 3 years before applying.
Exempt Survivors
The house may be protected from estate recovery if:
- A surviving spouse still lives there
- A disabled child lives there
- A minor child lives there
But if none of those apply? The state’s coming for it.
Life Estates and Irrevocable Trusts
These tools work—but only if set up outside the 5-year window and done correctly. I’ve bought a dozen homes where families thought they’d set up a life estate, but it was improperly executed and Medicaid didn’t recognize it.
The margin for error is razor-thin.
Time vs. Money: The Choice Nobody Wants to Make
Here’s the conversation I have with families at least once a week:
“Mike, if we keep the house and do nothing, what happens?”
You’ll qualify for Medicaid faster because the house is exempt. But after death, the state files a lien, you go through probate, and whatever’s left after recovery and fees goes to the family. Usually nothing.
“What if we sell to you now?”
You get cash today. Use it to private-pay for better care, create a proper spend-down, or help the family. When there’s no house in the estate, there’s nothing for the state to recover. It’s clean.
“But isn’t it wrong to sell the family home?”
I get it. That house has memories. But here’s what I’ve learned after 1,700 homes: The house isn’t the memory. The house is just the container. And if keeping the container costs your family $100K in estate recovery and years of legal stress, you’re not preserving anything—you’re creating a burden.
The families who call me aren’t giving up. They’re choosing to protect what matters.
What Families Do Wrong (And How You Can Avoid It)
After seeing this play out hundreds of times, here are the biggest mistakes I see:
- Waiting Until After Death: The state has already filed their claim. You’re fighting from behind.
- Assuming “Exempt” Means “Protected”: Exempt for Medicaid eligibility ≠ Protected from estate recovery. Totally different things.
- DIY Legal Planning: I’ve bought at least 30 homes where families tried to set up trusts or life estates themselves. One missed signature, one notary issue, and the whole thing falls apart.
- Letting the House Sit Empty: Every month that house sits empty, you’re paying taxes, insurance, and watching it deteriorate. I’ve seen homes lose $40K in value in 18 months just from neglect.
- Believing “We’ll Sell It Later”: Later never comes. Or it comes during probate, when you’re exhausted and the state is holding all the cards.
What I’d Do If This Were My Family
I’ve had this conversation with my own siblings about my parents. Here’s exactly what I’d do:
If Care Is Imminent:
- Get a cash offer on the house immediately (that’s me)
- Calculate the after-sale cash available
- Work with an elder law attorney to structure a compliant spend-down
- Use the money to private-pay for 12-24 months, then transition to Medicaid
- Ensure no real estate is left in the estate
If You Have 5+ Years:
- Consider an irrevocable trust (but hire a pro)
- Keep immaculate records of the transfer
- Understand you’re giving up control permanently
If It’s Too Late (Already on Medicaid):
- The house is likely stuck until after death
- Get a cash offer lined up so you’re ready the moment probate opens
- Minimize carrying costs
- Document everything for the estate attorney
The Bottom Line
Can a nursing home take your house in Ohio? No.
Can the state of Ohio take your house after you die to recover Medicaid costs? Absolutely.
Should you sit around and let that happen? Not if you call me first.
I’ve been doing this for 25 years. I’ve bought homes in every condition, every county, and every legal mess you can imagine. I know what estate recovery looks like, I know what it costs families, and I know how to help you avoid it.
The hard way is legal. It’s also slow, expensive, and heartbreaking.
The smart way is simple: Get a fair cash offer, close fast, and use the money to actually take care of your family instead of feeding it to the system.
Would you like me to run the numbers on your property today?
Call me at (937) 598-2274 or visit EZ Sell Homebuyers to get your cash offer in 24 hours. If you’re dealing with this in Dayton, I’ve closed dozens of homes just like yours. And if you’re inheriting a property caught up in this mess, I can walk you through exactly what to expect—and how to get out ahead.
FAQ: Can A Nursing Home Take Your House in Ohio?
Can a nursing home directly take your house in Ohio?
No. A nursing home can’t take your house. But if you use Medicaid to pay for care, the state of Ohio can file a lien after you die through the Ohio Medicaid Estate Recovery Program (ORC § 2117.061). I’ve handled dozens of estates where families thought the house was “safe,” only to find out the state had first claim.
What is the Ohio Medicaid estate recovery program?
It’s the legal process where Ohio recoups Medicaid expenses by filing claims against your estate after death. If your house is part of the estate, they’ll take it to recover what they paid. I’ve seen claims range from $40K to over $200K depending on how long someone was in care.
Can Medicaid place a lien on my house while I’m alive?
Not usually. The house is typically “exempt” while you’re alive and receiving care. The lien comes after death, during probate. That’s when families realize they should’ve sold years earlier. After 1,700 transactions, I can tell you: waiting until probate is the expensive way.
What’s the best way to protect my house from Medicaid recovery?
In my experience, the most reliable way is selling the house before or shortly after nursing home placement, then using the proceeds for care or a Medicaid-compliant spend-down. Trusts and life estates work—but only if done perfectly and outside the 5-year look-back period. I’ve bought at least 20 homes where the “trust” didn’t hold up.
What is the Medicaid 5-year look-back period?
Ohio Medicaid looks back 5 years at any asset transfers. If you gifted your house to your kids 3 years ago, Medicaid will penalize you and delay eligibility. I’ve seen families stuck with $150K+ in private-pay bills because of bad timing on transfers.
Will my spouse lose the house if I go into a nursing home?
No. Ohio has spousal impoverishment protections. If your spouse still lives in the home, it’s generally protected from estate recovery. But if you’re both gone and the house goes to your kids, the state will file a claim.
What happens to the house if it’s empty while I’m in the nursing home?
It sits. You pay property taxes, insurance, and maintenance. I’ve bought dozens of these homes—usually after 2-4 years of vacancy, they need $15K-$30K in repairs, back taxes are owed, and the family is underwater after estate recovery. Selling early would’ve saved them.
Is it better to sell the house before applying for Medicaid or after?
Before. I’ve closed hundreds of pre-Medicaid sales. Families use the cash for private-pay care (which is better than Medicaid care), spend down properly, then transition to Medicaid with nothing in the estate. It’s cleaner, faster, and the family actually keeps some money.
Can I just transfer my house to my kids to avoid Medicaid taking it?
Legally, yes. Practically? Only if you do it more than 5 years before applying for Medicaid. Otherwise, you’ll trigger penalties. And even then, it has to be done right. I’ve bought homes where the transfer was botched and Medicaid didn’t recognize it. You need a real attorney, not a Google search.
What should I do if I’m already on Medicaid and my parent’s house is sitting empty?
Call me. Seriously. Once someone’s on Medicaid, the house is usually “stuck” until after death. But you can prepare. I’ll give you a cash offer now so the moment probate opens, you’re ready to close and minimize the damage. The faster you move after death, the less the state and attorneys take.