One of the biggest fears adult children have when their parents need long-term care is losing the family home. It’s a fair concern — stories float around about nursing homes “taking” people’s houses to pay for care. But is that really what happens in California?
The short answer: no, nursing homes themselves do not take your house. But depending on how your parent pays for care, the state may try to recover costs later, and the home could be at risk.
Let’s break it down step by step so you know what’s fact, what’s myth, and what you can do to protect your family’s property.
Do Nursing Homes Actually Take Houses?
This is one of the most common misconceptions. Nursing homes in California don’t directly seize a home. They are private businesses and charge for services — but they don’t have the legal authority to take real estate as payment.
So where does the fear come from? In most cases, it’s tied to Medi-Cal (California’s Medicaid program), which can step in to cover nursing home costs when families can’t pay out of pocket. And that’s where things get complicated.
How Medi-Cal Pays for Nursing Home Care
Nursing homes are expensive. According to Genworth’s Cost of Care Survey, the average cost of a semi-private room in a California nursing home is about $125,000 per year. Most families can’t afford that long-term.
That’s where Medi-Cal comes in. If your parent qualifies, Medi-Cal will pay for nursing home care. But this benefit isn’t free — the state may seek reimbursement after the person passes away. This is called the Medi-Cal Estate Recovery Program.
How Medi-Cal Estate Recovery Works
When a Medi-Cal recipient dies, the state can place a claim against their estate to recover the money it spent on their care. And since a home is usually the largest asset in an estate, it’s often what the state targets.
Here’s what happens:
- If your parent owned a home in their name alone, Medi-Cal can file a claim after death.
- The state won’t force a sale while your parent is still living in the home.
- If a spouse or dependent child still lives there, the state usually delays recovery until they pass away or move.
Example: We worked with a family in Pasadena. Their mother received Medi-Cal while in a nursing facility for three years. After she passed, the state placed a $220,000 lien against the house to recover costs. The family was forced to sell the property to satisfy the claim.
When Is the Home Protected?
Not every situation results in losing the house. In California, certain exemptions and protections apply:
- Spousal protection: If a surviving spouse lives in the home, Medi-Cal cannot force its sale during their lifetime.
- Disabled or minor children: The state cannot collect against a home where these children reside.
- Hardship waivers: Families can sometimes request a hardship waiver if selling the home would create an unfair burden.
Example: A family in Fresno applied for a hardship waiver after their father passed. Their adult son with disabilities was still living in the home. The state agreed to delay recovery, allowing the son to stay in the house.
For more details on Medi-Cal’s recovery program, see the official California DHCS Estate Recovery guide.
Planning Ahead to Protect the House
The best way to keep a nursing home (or rather, Medi-Cal) from touching the house is to plan ahead before care is needed. Options include:
- Living trusts: Property placed in a trust may avoid probate and reduce exposure to estate recovery. See the California State Bar’s guide to living trusts.
- Transfer-on-death deeds: Allows the house to pass directly to heirs outside of probate.
- Gifting property early: Though risky, transferring ownership well in advance of needing Medi-Cal can protect assets (though lookback rules may apply).
- Selling the home: Some families choose to sell the house and use proceeds for care, avoiding estate recovery altogether.
Example: A family in Los Angeles sold their father’s house when he moved into a nursing home. This gave them funds to pay for private care directly and allowed them to bypass Medi-Cal recovery later.
What About Dementia and Long-Term Stays?
A common question is whether dementia-related stays change the rules. Unfortunately, dementia care can stretch for years, which makes Medi-Cal assistance more likely. If a parent with dementia enters long-term nursing care, the home can still be subject to recovery unless protected by the exemptions listed earlier.
Common Misconceptions About Nursing Homes and Houses
Let’s clear up a few myths we hear all the time:
- ❌ “If my parent goes into a nursing home, the facility will take their house.”
➡️ False. Nursing homes don’t have that authority. - ❌ “If the home is in a trust, Medi-Cal can’t touch it.”
➡️ Not always. The type of trust matters — revocable trusts may still be counted in estate recovery. - ❌ “The state takes the house right after my parent passes.”
➡️ Not always. Spouses and dependent children can delay or prevent recovery.
What This Means for Families in California
So, can a nursing home take your house in California? No — but Medi-Cal may place a claim against it after your parent’s passing if the state covered their care. That’s why estate planning is so critical.
If your family is facing this situation, selling the home may be the best option to cover care costs and avoid state claims later. We go into more detail in our guide to selling a parent’s house to pay for care in California.
Final Thoughts
Nursing homes themselves don’t seize houses, but Medi-Cal estate recovery can put your parent’s home at risk. The rules depend on ownership, heirs, and whether exemptions apply — but without planning, families can be caught off guard.
The earlier you act, the more options you have to protect the property. Sometimes that means creating a trust, sometimes selling the house, and sometimes applying for a hardship waiver.
If selling becomes the best choice for your family, our guide to selling a parent’s house to pay for care in California explains your options in detail and walks you through the process step by step.
At Mrs. Property Solutions, we’ve helped families across California navigate this stressful time by buying inherited or parent-owned houses quickly for cash. If you’re facing tough decisions about a loved one’s home, reach out — we’re here to help simplify the process.