Family homes carry memories, milestones, and meaning
For many Florida residents, applying for Medicaid brings a mix of relief and anxiety. Relief because Medicaid may cover long-term care costs that private insurance often will not. Anxiety because of a persistent fear that everything worked for, especially the family home, could be taken away.
In Boca Raton and across Florida, this concern is one of the most common questions raised with our South Florida estate planning lawyers during early planning conversations.
The short answer is that Medicaid does not automatically force someone to sell a primary residence. But the longer and more important answer is that the way a home is protected depends on timing, planning, family circumstances, and what happens after death. Without proper Medicaid planning, a home that feels safe during life can still be at risk later through estate recovery.
How Florida Medicaid treats a primary residence
Florida Medicaid generally treats a primary residence as a non-countable asset while the applicant is alive, provided certain conditions are met. The home must be the applicant’s primary residence, and the applicant must intend to return home, even if living in a nursing facility.
There is also an equity limit on the home’s value, which can change from year to year.
This rule is often misunderstood. Many people hear that Medicaid “does not count the house” and assume that means the home is permanently protected. That is not the case. The exclusion only applies while the Medicaid recipient is alive. What happens after death is an entirely different legal issue.
The role of Florida’s Medicaid estate recovery program
Florida participates in the Medicaid Estate Recovery Program (MERP). This program allows the state to seek reimbursement for long-term care expenses from a recipient’s estate after death. If the home is still in that person’s name at death, it can become a target for recovery.
This is where families are often blindsided. A home that was protected during life can become vulnerable later if no estate planning steps were taken. The goal of Medicaid planning is not just to qualify for benefits but to protect assets across generations.
Situations where a home may already be protected
Certain living situations can offer built-in protection from estate recovery, at least for a period of time. These protections are narrow, highly specific, and frequently misunderstood, which is why careful legal guidance matters.
These are some of the circumstances that may affect whether a home is vulnerable to Medicaid recovery:
- Spouse still living in the home: If a legally married spouse continues to live in the home, Medicaid cannot force a sale for recovery during the spouse’s lifetime.
- Minor or disabled child: If the home passes to a child who is under age 21 or permanently disabled, recovery may be delayed or avoided.
- Caregiver-child exemption: In limited cases, an adult child who lived in the home and provided care for at least 2 years before nursing home placement may qualify for a transfer exemption.
- Properly structured trusts: Certain types of irrevocable trusts, when created far enough in advance, can shield a home from Medicaid and estate recovery.
Each of these scenarios involves strict documentation rules, deadlines, and legal standards. Small mistakes can undo otherwise legitimate protections, which is why families often benefit from legal oversight rather than trying to interpret the rules on their own.
The five-year look-back rule and why timing matters
One of the most important parts of Florida Medicaid planning is the five-year look-back period. Medicaid reviews all asset transfers made within five years before the application date. If a home was transferred for less than fair market value during that window, Medicaid can impose a penalty period during which benefits are denied.
This is where well-meaning families often run into serious trouble. Deeding a home to a child without proper planning can delay Medicaid eligibility by months or even years, leaving families responsible for massive private-pay care bills. Timing, structure, and documentation are everything.
Why simple internet advice is risky
Online advice often promotes quick fixes, such as adding children to a deed or transferring property outright. These strategies can trigger gift taxes, capital gains problems, loss of homestead protections, creditor exposure for the child, and Medicaid penalties.
What looks simple on paper can unravel quickly under real legal scrutiny.
Florida’s Medicaid, probate, homestead, and trust laws intersect in ways that are not intuitive. Protecting a home without creating new financial or legal exposure requires coordinated estate planning, not isolated transactions.
How estate planning can protect the home before a crisis begins
The strongest home protection strategies are almost always put in place before a medical crisis occurs. When planning is proactive rather than reactive, there are more tools available, more flexibility, and far less financial risk.
A properly designed estate plan can address:
- Who controls the home during life
- How the property is treated if long-term care becomes necessary
- What happens to the home at death
- How Medicaid recovery is minimized or avoided
- How family conflict over the home is prevented
These layers of protection rarely come from a single document. They come from aligning deeds, trusts, powers of attorney, and long-term care planning well in advance.
A calm, clear path forward for Florida families
Going on Medicaid does not automatically mean losing the family home. But real protection depends on timing, planning, and understanding Florida’s estate recovery rules before options close. Every family’s situation is different, and rushed decisions often create irreversible problems.
At The Levy Firm, PLLC, clients work directly with attorney Geoff Levy. You receive clear answers, personal attention, and direct access to your lawyer, including his personal cell number and a 24-hour response promise. Services are available in both English and Spanish, and every plan is built around your specific risks and goals.
If long-term care, a serious injury, or a sudden medical decline has forced Medicaid questions into focus, legal deadlines matter. Delays can permanently limit what can be protected. A free, confidential consultation with a member of our legal team can clarify what options still exist and what steps should be taken next to protect your home and your family’s future. Contact us to schedule your free consultation now.
"With a milestone birthday approaching, I became concerned about estate planning and documentation. I met with Geoff Levy for an initial consultation. Geoff listened to my concerns, focusing on the more complicated issues unique to my estate situation, and after a few days, sent a thoughtful proposal outlining what was needed. Workflow and communication were efficient, with the final documents delivered in a timely manner. It was a pleasure working with Geoff and his colleague Johana to get this important paperwork behind me. I genuinely recommend The Levy Firm." - Chris, ⭐⭐⭐⭐⭐