Short answer: Usually not. The home stays excluded while a spouse or dependent relative lives there, or while the resident states an intent to return home (HHSC Form H1245), even if return is unlikely; very high equity and estate recovery are separate issues.
Texas excludes a home the person or spouse owns and has lived in. Once the person moves into a nursing facility, the exclusion continues if either:
- A spouse or dependent relative still lives in the home, whether or not the resident intends to return; or
- The resident intends to return home. The primary evidence is a signed Form H1245, Statement of Intent to Return Home, or a comparable written statement from the spouse or authorized representative.
The intent-to-return exclusion is not available for property the person owns but never lived in while owning it.
Two cautions. First, for 2026, home equity over $752,000 blocks Medicaid payment for nursing facility care unless a spouse or qualifying child lives there. Second, a home that is excluded for eligibility can still be claimed by the Medicaid Estate Recovery Program after death. Selling the home turns an excluded asset into countable cash, so get advice before listing it.