One of the most stressful questions families face when a loved one needs long-term care is:“Can the nursing home take the house?”
The fear is understandable. Nursing home care can be extremely expensive, and many Florida families worry that everything a parent worked for, including the family home, could be lost to long-term care costs.
The answer is not always simple. In Florida, your home may receive significant protection, but the rules depend on whether you are paying privately, applying for Medicaid, transferring assets, or dealing with estate recovery after death.
As an estate planning and asset protection attorney serving Miami Lakes and families throughout South Florida, I believe this is one of the most important conversations families should have before a health crisis occurs.
Can a Nursing Home Directly Take Your House?
Generally, a nursing home does not simply “take” your house.
However, if nursing home bills go unpaid, the facility may pursue collection like other creditors. The more common concern involves Medicaid eligibility and Medicaid estate recovery.
Many families use Medicaid to help pay for long-term nursing home care. Medicaid has strict financial rules, but Florida treats a primary residence differently from many other assets.
Is Your Florida Homestead Counted for Medicaid Eligibility?
In many situations, a Florida homestead is not counted as an available asset for Medicaid eligibility purposes, subject to applicable rules and limitations.
This means a person may be able to qualify for Medicaid while still owning a primary residence. However, eligibility rules are technical, and the facts matter.
Important issues may include:
- Whether the home is the applicant's primary residence
- Whether the applicant intends to return home
- Whether a spouse or dependent relative lives in the home
- The amount of home equity
- How the home is titled
Because these rules can change and depend on the family structure, it is important to review the situation with an attorney before assuming the home is safe.
What Is Medicaid Estate Recovery?
Even if the home does not prevent Medicaid eligibility during life, families must also consider Medicaid estate recovery after death.
Florida's Medicaid Estate Recovery Act allows the state to seek recovery for certain Medicaid benefits paid on behalf of a recipient after the recipient dies. Florida law also provides that where there are no liquid assets, nonexempt personal property or real property that is not protected homestead may be sold to satisfy a Medicaid estate recovery claim, but recovery cannot exceed the total Medicaid assistance provided.
This is why the distinction between protected homestead, probate assets, and non-probate assets is so important.
Does Florida Homestead Protection Help?
Yes, Florida homestead protection can be powerful.
Florida homestead laws may protect a qualifying primary residence from many creditor claims, including after death when the property passes to protected heirs. However, homestead law is technical, and mistakes in titling, estate planning documents, or beneficiary planning can create unnecessary risk.
For example, problems may arise if:
- The home is left to the wrong person
- The home becomes part of the probate estate unnecessarily
- The owner transfers the home improperly
- The family waits until incapacity or a nursing home crisis to plan
Should You Transfer the House to Your Children?
Many families think the easiest solution is to deed the home to children.
This can be a serious mistake.
Transferring a home may trigger Medicaid look-back issues, loss of control, tax consequences, family conflict, creditor exposure through the child, or loss of homestead-related benefits. A child's divorce, lawsuit, bankruptcy, or financial problems could also place the property at risk.
Before transferring a Florida home, speak with an attorney who understands both estate planning and asset protection.
Planning Tools That May Help
Depending on the circumstances, planning may involve:
- Enhanced life estate deeds, commonly called Lady Bird deeds
- Revocable living trusts
- Irrevocable trusts
- Durable powers of attorney
- Healthcare surrogate designations
- Homestead planning
- Medicaid planning
- Coordinated beneficiary planning
The right strategy depends on the homeowner's health, age, assets, family structure, and long-term goals.
The Best Time to Plan Is Before a Crisis
The most effective planning is done before a loved one enters a nursing home.
Once someone is already in a facility, incapacitated, or facing immediate Medicaid eligibility issues, the options may become more limited.
At Gold Legacy Law, PLLC, I help families throughout Miami Lakes and South Florida create estate planning and asset protection strategies designed to preserve the family home, reduce probate problems, and protect a lifetime of hard work. If we are not able to assist with what is referenced as Medicaid crisis planning, we can help you connect with an attorney who does.
Final Thoughts
Nursing home costs do not automatically mean your Florida home will be lost. Florida provides important protections, especially for homestead property. However, Medicaid rules, estate recovery, probate, and improper transfers can create serious risks if planning is delayed.
If protecting the family home is important to you, the best step is to plan early and make sure your estate plan, asset protection plan, and long-term care strategy work together. Call us today at 305-556-5209.
Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship between you and Gold Legacy Law. For legal advice regarding your personal situation, please contact our office to schedule a consultation.
