The Short Answer

In Pennsylvania, a “Lady Bird deed” (also called an enhanced life estate deed) is not a commonly recognized, plug-and-play tool the way it is in some other states, and it is not a guaranteed way to protect a home from Medicaid-related claims. Pennsylvania Medicaid issues usually turn on (1) whether a transfer triggers a Medicaid transfer penalty during the applicant’s lifetime and (2) whether the home is reachable through estate recovery after death.

What Pennsylvania Law Says

When someone receives certain public benefits, Pennsylvania law can allow the Commonwealth to assert claims against the person’s estate after death, and Pennsylvania probate law sets an order for paying claims from estate assets. Separately, transfers made to avoid creditors can be challenged under Pennsylvania’s voidable transactions law—an issue that can come up when families try to move a home out of an estate to avoid recovery.

The Statute

The primary law governing how claims (including claims for medical assistance provided shortly before death) are paid from a Pennsylvania estate is 20 Pa.C.S. § 3392.

This statute establishes that if an estate does not have enough assets to pay everything, certain costs and claims—expressly including “services performed for him within that time … under the medical assistance program” within six months of death—are prioritized in the payment order.

Also relevant when a home is transferred to try to avoid claims is Pennsylvania’s voidable transactions law, 12 Pa.C.S. § 5101, which defines “transfer” broadly and is part of the framework used to unwind certain improper transfers.

For a deeper discussion of recovery concepts, you may also want to read: Will Pennsylvania Medicaid or Medicare try to recover benefits from my mother’s estate? and How does the Medicaid lookback period affect gifts or transfers in Pennsylvania?.

Why You Should Speak with an Attorney

Even if you’ve heard that a Lady Bird deed can “keep the house out of probate” or “avoid estate recovery,” applying that idea in Pennsylvania is rarely straightforward. Outcomes often depend on:

• Strict timing rules and benefit eligibility: Transfers made too close to a Medicaid application can create eligibility problems and unexpected periods of ineligibility.
• Burden of proof and documentation: The family may need to prove what was transferred, when, why, and for what value—especially if the transfer is questioned later.
• Claims and recovery risk: Pennsylvania’s estate-claim rules (including priority rules in 20 Pa.C.S. § 3392) and creditor/transfer challenges under 12 Pa.C.S. § 5101 can change whether a “simple deed fix” actually works—or creates new problems.

Because the stakes are often a family home and long-term care eligibility, it’s worth having a Pennsylvania probate/elder law attorney review the deed history, the ownership type, and the Medicaid timeline before anyone signs or records anything.

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Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.