Caregiver Child Exemption in Pennsylvania | Protect Your Home from Medicaid Recovery
- Ashley Sharek
- 4 days ago
- 3 min read
When it comes to protecting your home from nursing home costs, many Pennsylvania families do not realize that being cared for by your adult child at home could be the key.
Thanks to the Caregiver Child Exemption, you may be able to transfer your house to your caregiving child without it being counted as a gift under Medicaid rules. This can allow you to qualify for long-term care benefits while preserving your home for your family.
Let us break down how this works, who qualifies, and why working with an elder law attorney is essential.
What Is the Caregiver Child Exemption Pennsylvania?
The Caregiver Child Exemption is a special rule under Medicaid law in Pennsylvania that allows a parent to transfer their home to an adult child without a penalty. This applies when the adult child:
Lived in the parent’s home for at least two years before the parent moved into a nursing home
Provided care during that time that helped the parent avoid the need for nursing home care
If these conditions are met, the home can be transferred to the child without it being considered a gift for Medicaid purposes.
Why This Matters for Your Family
Nursing home care in Pennsylvania can cost more than twelve thousand dollars per month.
If your assets are not properly protected, your home may be considered available to pay for care. That means your home could be lost to Medicaid estate recovery later.
The Caregiver Child Exemption provides a way to transfer your home legally while preserving Medicaid eligibility. This can save families hundreds of thousands of dollars and give peace of mind that a loved one will still have a place to live.
Who Qualifies for the Caregiver Exemption?
Not every situation will meet the requirements. To qualify, the following must usually be proven:
The adult child lived in the home full-time for two years before nursing home admission
The child provided direct care that delayed the need for institutional care
There is documentation showing how the child’s care helped keep the parent safe at home
Medical records, personal statements, caregiver logs, and testimony can all be used to support the exemption. It is important to have an elder law attorney guide the process and ensure all requirements are met. Timing and documentation are critical.
Real-Life Example
Linda is a single mother living in Erie, Pennsylvania. Her adult daughter, Maria, moved in with her after Linda’s health began to decline. For more than two years, Maria helped with medications, meals, doctor visits, and daily living.
When Linda eventually needed skilled nursing care, they were able to transfer the home to Maria under the Caregiver Child Exemption. The home was protected and did not count against Linda’s Medicaid eligibility.
Now, Maria continues to live in the home she helped maintain, and Linda is receiving the care she needs without losing everything.
Why Early Planning Matters
Medicaid laws can be complicated, and small mistakes can lead to large penalties. The Caregiver Child Exemption can only be used if it is properly applied and documented.
If you wait too long or miss a step, your family might lose the chance to protect your home.
Working with an experienced elder law attorney helps ensure you understand all your options and plan the right way.
Protect Your Legacy with Confidence
If your adult child is helping you stay in your home, the Caregiver Child Exemption might be the right strategy for your family. Estate and Medicaid planning are not just about money.
Schedule a free consultation with Entrusted Legacy Law to learn how we can help protect your home and your legacy.