When planning for long-term care—particularly nursing home care—many Louisiana families face a tough question: “Will Medicaid count my home when determining my eligibility?”

The answer: Yes, but not always.  While Medicaid has strict income and asset rules, your primary residence in Louisiana can be exempt under the right conditions. This article breaks down how the exemption works in Louisiana, when it applies, and how to protect your home both now and in the future.

✅ When Is a Home Exempt Under Louisiana Medicaid?

Medicaid in Louisiana considers your homestead exempt from asset calculations if it's your primary residence and:

• You're living in it, or

• You express an intent to return to it, even if you're currently residing in a nursing facility.

That means if you move into a nursing home but still consider your house your home, you can keep it off the countable asset list—at least initially.

💰 Louisiana's Equity Value Cap (2025)

Louisiana follows the federal minimum home equity rule.
In 2025, the maximum equity value allowed in an exempt home is $713,000.

If your home's equity exceeds this amount and you're not living in the home, the portion above the limit may be treated as a countable asset, which could disqualify you from Medicaid eligibility until addressed.

👨‍👩‍👧‍👦 Who Can Live in the Home to Keep It Exempt?

Even if you're in a facility, Louisiana Medicaid will exempt the home regardless of equity if any of the following individuals reside there:

• Your spouse

• A child under age 21

• A blind or disabled child of any age

• A sibling with an ownership interest who lived in the home for at least one year before you entered long-term care

• An adult caregiver child who lived in the home for at least two years and provided care that helped you avoid institutional care

This opens powerful planning opportunities to preserve the home and qualify for Medicaid—if done carefully and in advance.

🛑 But What About Estate Recovery?

Here's the catch many people miss:
While Louisiana Medicaid may not count your home during your lifetime, it may try to recover those benefits from your estate after you die.

This means Medicaid can place a claim or lien on your home—even one that was exempt during your life—unless appropriate steps are taken to avoid or limit estate recovery.

🧠 Planning Ahead: Louisiana Medicaid & Asset Protection

The key to protecting your home lies in early and strategic planning. Common tools include:

• Usufruct and naked ownership transfers (unique to Louisiana's civil law system)

• Irrevocable trusts

• Transfers to exempt individuals (such as caregiver children or spouses)

⚠️ Caution: Transferring the home improperly can trigger Medicaid's 5-year look-back period, resulting in a penalty period of ineligibility. Work with an attorney familiar with Louisiana Medicaid rules before making any transfers.

🔍 Final Thoughts

In Louisiana, your home can be exempt when applying for Medicaid—if you meet the specific requirements. But without the right planning, you could still risk delayed eligibility or estate recovery after death.

If you or a loved one is considering long-term care, don't wait until crisis hits. Early legal planning can help you protect your home, your assets, and your family's peace of mind.

Need help navigating Louisiana's Medicaid rules?

Contact Business Law Group today—we can help you put the right strategy in place.