Medicaid Lien on Your Home
New York
New York’s Medicaid Estate Recovery Program (MERP) can place a claim against a home after a Medicaid recipient dies. Most WNY families don’t know this is coming until it’s too late to plan around it. This guide explains how the lien attaches, when recovery is deferred, and what options exist — including selling the home before or during the process.
NCB is not a law firm. This page is general educational information about New York Medicaid law. Laws change. Consult a licensed New York elder law attorney. OMIG: omig.ny.gov · Bar Association of Erie County: (716) 852-8687
Works in New York
Medicaid is not free money. New York State — through OMIG (Office of the Medicaid Inspector General) and the Casualty & Estate Recovery Unit — is required by federal law to seek reimbursement for Medicaid long-term care costs from the estates of deceased recipients.
In New York, this recovery is probate-only. MERP can only make claims against assets that pass through the probate estate — it cannot pursue jointly held property, life estates, living trusts, or assets with named beneficiaries, in most cases. This is a significant protection compared to states that use expanded estate recovery.
| MERP Fact | New York Rule |
|---|---|
| Who administers recovery | OMIG Casualty & Estate Recovery Unit — omig.ny.gov |
| Recovery scope | Probate estate only (not joint tenancy, living trusts, TOD accounts) |
| Who is subject | Medicaid recipients age 55+ OR permanently institutionalized at any age |
| What is recovered | Cost of nursing home, home care, and related Medicaid services paid |
| When recovery begins | After death of recipient — not during lifetime |
New York State must defer — or may be required to waive — MERP recovery under several circumstances. These protections exist to prevent surviving family members from losing their home due to a parent’s or spouse’s Medicaid use.
| Deferral Condition | What It Means |
|---|---|
| Surviving spouse alive | Recovery is deferred until after the surviving spouse dies |
| Child under 21 | Recovery is deferred while a child under 21 resides in the home |
| Blind or disabled child (any age) | Recovery is deferred while a certified blind or disabled child lives in the home |
| Caregiver child exemption | Recovery may be blocked entirely — see Caregiver Child Exemption guide |
| Undue hardship waiver | Available in limited circumstances — must be applied for from OMIG |
When MERP recovery is deferred — for example, while a surviving spouse is alive — the claim does not disappear. It waits. When the deferral condition ends (surviving spouse dies, child turns 21, etc.), the state can then pursue recovery. Families who believe the lien “went away” during deferral are often surprised when the claim surfaces during estate administration.
DISCLAIMER: This is general information only. Consult a licensed elder law attorney for your specific situation.
The family home is typically the highest-value asset subject to MERP recovery in a New York probate estate. Understanding when and how it can be affected — and how it might be protected — determines whether selling the home before or during estate administration is the right move.
OMIG is notified through DSS reporting. The Casualty & Estate Recovery Unit calculates the total Medicaid claim based on services paid.
If a probate proceeding is opened in Erie County Surrogate’s Court (92 Franklin St, Buffalo), OMIG files a creditor claim against the estate.
The estate must respond. If the home is in the probate estate and no deferral conditions apply, OMIG can require it be liquidated to satisfy the Medicaid debt — up to the full amount of benefits paid.
Many families negotiate with OMIG or sell the home. NCB buys homes subject to Medicaid claims and estate proceedings — working directly with estate attorneys throughout the process.
NCB has purchased Buffalo-area homes through estate proceedings subject to MERP claims. We work directly with the estate attorney and OMIG timeline. Cash offer within 24 hours, close in 7 days. No repairs, no cleanout. Call (716) 557-7005.
Does Medicaid put a lien on your house in New York?
Medicaid does not typically place a lien on your home during your lifetime (with limited exceptions for certain circumstances). However, after a Medicaid recipient dies, New York’s MERP program can file a creditor claim against the probate estate — which commonly includes the family home. In New York, recovery is limited to the probate estate, so assets held in living trusts, joint tenancy, or with named beneficiaries may not be subject to recovery. DISCLAIMER: This is general information. Consult a licensed NY elder law attorney for guidance specific to your situation.
Can I sell my parent’s home if Medicaid has a claim?
Yes — in most cases the home can be sold, and the Medicaid claim is paid from the proceeds at closing, similar to how a mortgage or tax lien is satisfied. NCB buys homes subject to MERP claims and works with estate attorneys through the process. The key is ensuring proper legal authority exists to sell (executor, administrator, or power of attorney). DISCLAIMER: Consult a licensed NY elder law attorney before proceeding.
How much can Medicaid recover from a New York estate?
OMIG can recover up to the total cost of all Medicaid long-term care services paid on behalf of the recipient — this can be substantial if years of nursing home care were covered. The claim is limited to what the probate estate is worth. If the home is the primary estate asset, the claim may consume most or all of its value. DISCLAIMER: This is general information. Actual claims vary. Consult OMIG at omig.ny.gov or a licensed elder law attorney.
Areas We Serve
NCB purchases homes across all of Buffalo and Western New York — any condition, any situation, all contents included.
Does Medicaid put a lien on your home in New York? How MERP works, when recovery is deferred, and what WNY families can do. NCB buys homes subject to Medicaid liens. Nickel City Buyers, LLC · 3842 Harlem Rd STE 400-339, Cheektowaga, NY 14215 · (716) 557-7005. Not legal or Medicaid advice. A+ BBB · 300+ homes since 2013. OMIG: omig.ny.gov. Bar Association of Erie County: (716) 852-8687.
Not Sure What
Your Options Are?
Every situation is different. If the home is part of the picture — whether for care funding, estate planning, or Medicaid — NCB can walk through what a sale would look like. No obligation. No pressure.