Florida Homestead and Medicaid: What You Need to Know
Florida is one of a few states that has a very broad homestead protection.
Florida’s Constitution states that a person’s homestead is protected from their creditors (this includes nursing home or other medical bills).
You hear stories about the nursing home forcing someone to sign their house over to them or forcing them to sell the property and spend down the money on their care.
In Florida, as long as you have an intent to return to your home (it doesn’t matter that you cannot return to the home, but you would if you could) your house remains an exempt asset and Medicaid does not count it.
At your death, the house will go to your heirs free of any claims from creditors (including Medicaid).
Thus, it is generally not a good idea to transfer your house to your children (or other relatives) because, not only will you lose the homestead protection, you will be penalized for the transfer and may not be able to qualify for nursing home Medicaid benefits.
However, Medicaid does not penalize you for transferring the home to your child if the child has been living with you and caring for you. Federal law allows a Medicaid applicant to transfer their home to an adult caregiver child if the adult child’s care has delayed the applicant’s entry into a nursing home for two or more years.
It is important to note that the adult child must have lived in the parent’s home while caring for the parent for those two years. Medicaid will require documentation from the parent’s treating physician who can state that the parent’s level of functioning required the adult child care for that two year period.
Medicaid will also require an affidavit from a neighbor or other friend who can state that the adult child, did in fact, care for the parent. Finally, the parent must be able to sign a deed or have a power of attorney that allows for the transfer of homestead property.
Contact Florida Homestead and Medicaid Attorney
Are you interested in learning more about your Florida homestead and Medicaid? Please call Florida Board Certified Elder law attorney, Laurie E. Ohall at 813-438-8503 for a free telephone consultation.