My father-in-law needs to go into a nursing home, he is on Medicaid in Illinois.

My mom ended up living out her last 2 1/2 years in a nursing home. She owned her home, and was on Medicaid. We live in Florida which is considered a "homestead" state. There was never any concern about her losing her home. When she passed away, the home went to me, her only child.
My advice would be to see an Elder Care Attorney who is well versed in Medicaid laws in your state. The money and time we spent on that attorney, was money and time well spent. In the end, the attorney's advice helped to preserve the hard earned money my mom saved over her lifetime.
Best wishes to you, Chrissy.

If you dad owns a home, Medicaid will place a lien on that home in the amount that his care cost. If dad has a spouse, or in some situations, a family caregiver who has lived there for some amount of time (depending upon the state), the spouse ALWAYS has life tenancy of the house, In other words, if DAD goes into a NH on Medicaid and grandma, the COMMUNITY SPOUSE remains at home, Medicaid will NOT ask that the house be sold before GRANDMA passes. "Come after" is such a stupid phrase, in my opinion.

If your dad dies while in nursing home, state may come after the home as repayment.

They don't "take" your pension and social security. When you enter a nursing home, your income goes to the nursing home as payment for your care. Medicaid will then pay the balance between your income, and the cost of the nursing home (which can range from $8k to $12k a month in most places).

Angel