Page 53

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued June 9, 2026

Page 53 of I-1630 Replacing September 23, 2024

Revised/added text indicated by underscore

Deleted text indicated by “**”

Home Property in Trust

** If an individual’s excluded home property is placed into a trust that is a countable resource, such as a revocable trust, then the home maintains the home property exclusion since the beneficiary still has an equitable ownership interest in it.

If an individual’s home property is placed into a trust that is not a countable resource, such as an irrevocable trust, then it is also not considered a resource, since the individual no longer has an ownership interest in the home, however, it should be evaluated for a transfer of resources. Refer to I-1700 Trusts.

Individuals with Substantial Home Equity

An individual who is applying for Long Term Care on or after November 1, 2007 may not be eligible for payment of nursing home cost (vendor payment) if the individual’s equity interest in the home property less encumbrance exceeds the allowable home equity limit (Refer to Z-2300 Home Equity Limits by Year). This is not a change in the general rule that excludes a home of any value for purposes of determining eligibility for Medicaid. It applies only to the payment for nursing facility services, or other long-term care services

Exception: The limitations on home equity do not apply if the spouse of the individual, the individual's child under 21, or the individual's blind or disabled child is residing in the home.

An individual who is applying for home and community- based waiver services cannot be eligible for waiver services if their equity interest in the home property less encumbrance exceeds the allowable limit and no exception is allowed.

The individual must be given the opportunity to apply for an undue hardship exception. Refer to H-860 Undue Hardship and Undue Hardship Exception.