Will the Government Take My House for Nursing Home Costs in New Brunswick?

The Short Answer: No

New Brunswick's long-term care financial assessment is strictly income-tested, not asset-tested. The province does not seize, evaluate, or place liens on the family home to offset nursing home or special care home costs. Your parent's house, savings accounts, GICs, investments, life insurance policies, and vehicles are all completely excluded from the co-payment calculation.

This is one of the most persistent myths in Canadian elder care, and it causes families to delay applying for subsidized care out of fear that the government will take their parent's property. That delay can be costly — both in hospital per diem charges for ALC patients and in caregiver burnout for families trying to manage care at home beyond the point where it's safe.

Why the Confusion Exists

The myth persists because New Brunswick's long-term care financial rules are fundamentally different from the province's standard social assistance program. Under basic social assistance:

• Liquid savings are capped at $1,000 for single individuals and $2,000 for families
• A primary residence is only exempt if the applicant is living in it — if vacated, it must be sold at fair market value
• RRSPs can be counted as liquid assets if they can be legally cashed

None of these asset rules apply to the Long-Term Care Program. The two programs share the Department of Social Development as their administrator, which leads many families — and even some front-line staff — to conflate the rules. But the legal frameworks are separate, and the long-term care assessment explicitly exempts all assets.

What Actually Gets Assessed

The Financial Needs Assessor evaluates net annual income from regular sources:

• Canada Pension Plan (CPP)
• Old Age Security (OAS)
• Guaranteed Income Supplement (GIS)
• Private employer pensions and foreign pensions
• RRIF withdrawals and investment interest
• Employment Insurance and long-term disability payments

The assessed income is reduced by basic income tax liabilities, statutory deductions, and private health insurance premiums. The result determines the monthly co-payment under the Standard Family Contribution formula.

For couples, at least 60% of combined household income must remain with the community spouse. The co-payment can never impoverish the partner who stays at home.

The One Exception: Rental Income

There is one narrow circumstance where a home-related payment enters the assessment. If a subsidized resident's primary residence is rented out while they're in care, 75% of the gross rental income must be contributed toward their care costs. The remaining 25% is preserved for property taxes, maintenance, and home insurance.

This applies only to rental income from the property. The home itself is excluded from the assessment, so a vacant home produces no rental income to contribute. Before selling or transferring it, ask Social Development how the transaction and any resulting proceeds will be treated, and get tax or legal advice. Rental income remains subject to the 75% contribution rule.

What This Means Practically

Families can apply for subsidized long-term care without any risk to the family home or the parent's accumulated savings. The assessment looks solely at what income flows in each month, not at what's been saved or built over a lifetime.

This distinction also means families generally do not need to spend down exempt assets solely to qualify for long-term care. Do not transfer the house or other assets without first getting professional advice about tax, benefit, and family-law consequences.

That said, the income side of the equation still matters significantly. Understanding how CPP, OAS, GIS, and private pensions combine to determine the co-payment — and how to reduce the assessed amount through the ISP3040 involuntary separation filing and private health insurance deductions — can save a family hundreds of dollars per month.

The full income assessment breakdown, spousal protection rules, and co-payment reduction strategies are covered in the New Brunswick Long-Term Care Costs & Subsidies Guide.

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