Syracuse, NY - Frederick P. Davies of Davies Law Firm (https://davieslawfirm.com/how-new-york-medicaid-looks-at-your-homestead/) outlines how New York Medicaid evaluates the primary residence, or “homestead,” and provides current figures and planning guidance for families navigating long-term care. The update explains the protections available to a homestead under New York’s rules and confirms the steps a Central New York Estate Planning Lawyer can take to help families qualify for needed care while safeguarding housing stability.
New York Medicaid treats a homestead as a special asset category. Under 2025 rules, one owner-occupied residence can remain an exempt resource when home equity is at or below $1,097,000 and the applicant lives there or has a documented intent to return. The exemption also applies when a spouse, a child under 21, or a blind or disabled child resides in the home. A Central New York Estate Planning Lawyer can help confirm equity levels, document an intent to return, and coordinate evidence of a protected resident so the home remains outside countable resources.
Specific transfer exceptions continue to protect family housing arrangements. A penalty-free transfer of the home may be made to a “caretaker child” who lived in the residence for at least two years immediately before institutionalization and provided care that delayed nursing home placement. A transfer to a blind or disabled child remains exempt from transfer penalties under federal law. A transfer to a sibling is allowed when that sibling holds an equity interest and lived in the property for at least one year immediately before institutionalization, which also prevents a pre-death lien while that sibling with equity continues to occupy the home. Life estate purchases face strict federal Deficit Reduction Act treatment and will be considered uncompensated transfers unless the purchaser actually resides in the new home for at least one continuous year after purchase and the price paid does not exceed the actuarial value of the life-estate interest. These rules guide families seeking lawful, results-focused planning with a Central New York Estate Planning Lawyer.
Resource and income limits for 2025 affect eligibility and cash flow planning. Community Medicaid applicants may hold up to $32,396 in countable assets for a single applicant, and $43,781 for a couple applying together. Monthly income for home care includes an allowance of $1,800 plus a $20 disregard. For nursing facility care, applicants keep a $50 personal-needs allowance, with the balance contributed to care. Where only one spouse applies, the community spouse may retain assets within New York’s Community Spouse Resource Allowance, at least $74,820 and up to $157,920 depending on circumstances, along with a monthly income allowance that can reach $3,948. The minimum community spouse income allowance as of July 1, 2025, is $2,643.75. These figures adjust periodically, so contemporaneous verification remains essential. Planning tools may include titling strategies, carefully timed gifts, compliant trusts, and pooled income trusts for home-care overage, coordinated by a Central New York Estate Planning Lawyer to maintain eligibility while preserving practical access to funds.
Davies Law Firm invites families to learn more about keeping a homestead protected within New York’s Chronic Care Medicaid program and to review individualized options for preserving assets while arranging necessary care. Telephone conferences are available at (315) 472-6511, and complimentary educational seminars provide step-by-step guidance on homestead rules, spousal protections, and lawful transfer strategies.
About Davies Law Firm:
Davies Law Firm serves Central New York with a focus on trusts and estates, elder law, Medicaid planning, and related tax-sensitive strategies. The practice is led by Frederick P. Davies, whose background as a Judge Advocate and decades devoted to estate planning shape a practical, client-centered approach for families in Syracuse and surrounding communities. To schedule a telephone conference, contact (315) 472-6511.
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Company Name: Davies Law Firm
Contact Person: Frederick P. Davies
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Phone: (315) 472-6511
Address:210 E Fayette St
City: Syracuse
State: New York 13202
Country: United States
Website: https://davieslawfirm.com/
