Can Medicaid or the nursing home take our families home?

Mulrooney,
As many here have advised you need an attorney asap. The kind of attorney is critical. Choose a Law Firm that specializes in Medicaid claw back/recovery and estate planning related to elder law.
Check this out: "Medicaid Estate Recovery Program: How it Works "(medicaidlongtermcare.org)
Do not try to do this yourself. Read, study and use the information to make a list of questions for the attorney. Also be prepared to bring copies of all the legal documents to your first meeting and take notes during the meeting. You may want to interview more than one attorney. I do hope and think you have some rights as a caretaker and daughter. It may depend on the state you live in.
Good luck with this.

This can vary state by state no?, as far as how the State's medicaid has nuances on this . This topic more than any requires elder care attorney ~!

"because the home is valued over a certain amount"

This is your problem. There is a cap when it comes to a home. If worth over a certain amount its an asset that needs to be sold. And I was told the same thing when Mom was on Medicaid, the Will means nothing. You really had no right to change Dads half of the house over to you. Upon Dads death, the house was now an asset that could be sold for Moms care.

You need to see an Elder Lawyer versed in Medicaid law. You need to claim Caregiver rights.

Yes, you need to have a good attorney help you with this. Different states have different laws, and in many states a caregiver family member who lived there and took care of their parents has a right to stay in the home. As far as the home ownership and the will you really need an attorney to help with that. I know attorneys (and you want a good one) are expensive, do what you need to do to pay the attorney.

Mulrooney,
I also found this online, so you badly need an attorney. This is from one online attorney's info who practices in Illinois. This is quote:

"States must attempt to recover funds from the Medicaid recipient’s probate estate (property held in the recipient’s name only). Securing Medicaid benefits requires that the recipient have extremely limited assets. So, the only probate property of substantial value that a Medicaid recipient is likely to own at death is their home.

Expanded Estate Recovery
Note that some states also opt to seek recovery against property in which the Medicaid recipient had an interest but that passes outside of probate. This is called “expanded” estate recovery and may include jointly held assets, assets in a living trust, or life estates.

(States that do not use expanded estate recovery cannot make a claim against a Medicaid recipient’s home if it is not in their probate estate.)

In addition to the right to recover from the estate of the Medicaid beneficiary, state Medicaid agencies may place a lien on real estate owned by a Medicaid beneficiary during their lifetime (unless certain dependent relatives are living in the property).

What Is a Lien?
If Medicaid places a lien on your home, it means that Medicaid has a legal claim to that piece of property. In other words, the state Medicaid agency has the right to use your home as collateral if the estate is unable to pay the costs of the Medicaid recipient’s care.

The state cannot impose a lien if a spouse, a disabled or blind child, a child under age 21, or a sibling with an equity interest in the house is living there.

If a lien is placed on the Medicaid recipient’s property and it is sold while the recipient is alive, they may no longer qualify for Medicaid. This would be the case if, for example, the proceeds from the home’s sale exceeded the Medicaid asset limits in the recipient’s state.

The beneficiary also would have to satisfy the lien by paying back the state for its coverage of care to date. In some states, the lien may be removed upon the beneficiary's death. In others, the state can collect on the lien after the Medicaid recipient dies. Check with your attorney to see how your local agency handles this.

How to Avoid Medicaid Estate Recovery
There are some circumstances under which the value of a house can be protected from Medicaid recovery:

When the house is in the spouse’s name and the Medicaid recipient had relinquished their interest

If the house is in an irrevocable trust

When some children or relatives of the Medicaid recipient qualify for an undue hardship waiver

For example, if a Medicaid recipient's daughter took care of him before he entered the nursing home, and she has no other permanent residence, she may be able to avoid a claim against his house after he dies. Be sure to speak with your attorney to find out whether the undue hardship waiver may be applicable.

Medicaid estate recovery varies by state and can be complicated to navigate under the best of circumstances. Find a qualified attorney in your area today to help you make decisions that will work for your unique situation."
End quote.

Because you were a child caring for both your parents for some time it is crucial you get this straightened out. This about recovery from the estate BEFORE the estate is settled (ie passing the title of the home to you) is worrisome.
There's tons of stuff online, but do find a good attorney for your own state and your own area and your own case. This is crucial to your well being.

You should see an elder law attorney at once. It sounds as though this was wrongly done, and this is what happens with a lot of do-it-yourself things.
If your father was on Medicaid, then Medicaid MAY have some right to recovery of funds on a home he owned before inheritances are settled out of his will. I do not know the law in Illinois.
While he may have left it to you, this portion of it, it sounds as though this would be after all his debts are paid off, and that if he was on Medicaid they may feel you could not have been added onto the deed until Dad's estate was settled, both is debts and his assets.
Just this a.m., Igloo, who is so very well informed said that when there are marital assets they are too complicated to it it yourself. You will need an attorney.

Much of the details in applying for governmental assistance for placement when owning a home is complicated. Do see an attorney.

I hate dealing with Medicaid, they are the most organized of all our federal/state programs.

You don't give them the home, however, when she dies they will take it to pay for what they paid out for her care, the home should have been left to your mother to provide for her, not deeded to you.

There is a look back period in all states, so what he did was not according to their guidelines.

The option is to sell it, using the money for her care, which is what is supposed to happen in the first place. Perhaps they will let you live there until she dies, giving you time to get your life back in order.

I would meet face to face with Medicaid and see what can be worked out. You may have to hire an attorney as well.

In any case the proceeds from the home are for your mother's care, not your well-being.

When my father was alive there was no issue but now that he has passed they are saying the will does not matter or my name on the deed they look at it as still only hers & because the home is valued over a certain amount they said it has to be sold to cover her stay I called and explained everything and still received a denial letter with the reasoning being her home listed as her asset

Where are you getting this info???

Liens
Starting on June 2, 2022, Illinois stopped using liens on real estate to recover for Medicaid assistance. 

The nursing home NOR Medicaid can or will take the family home to recover costs of your mom's care.

Please see an elder care attorney who's versed in Medicaid who can guide you accordingly.

Medicaid does not take a home and either can the Nursing home, A house is an exempt asset. Your Dad left you half the home. As their Caregivers you should be allowed to stay in the home. Its called a Caregivers allowance. Since Mom is on Medicaid, Dads half maybe should have gone to Mom. I would give her caseworker a call and ask how that works. Claim Caregiver Allowance. Explain that you cared for both parents over 8 yrs and lived there. If they give u a problem see an Elder Lawyer. They are versed in Medicaid law.