As a Florida Board Certified Elder Law attorney serving Fish Hawk and surrounding communities, I frequently encounter confusion about Medicaid liens. Many families are surprised when, after a loved one passes away, they discover the state has a claim against the deceased’s property. Understanding how Medicaid liens work in Florida is crucial for proper estate planning and protecting family assets.
What Is a Medicaid Lien?
When Florida’s Medicaid program pays for healthcare services—particularly long-term nursing home care—the state has the legal right to recover those costs from the recipient’s estate after their death. This recovery process occurs through what’s known as a Medicaid lien, essentially a claim against property owned by the deceased Medicaid recipient.
Types of Medicaid Liens in Florida
Florida implements two primary types of Medicaid liens:
TEFRA Liens can be placed on a Medicaid recipient’s property while they’re still alive. These apply when a person is in a nursing facility or other institution and is not reasonably expected to return home. However, these liens cannot be enforced until after the recipient’s death if a spouse, disabled child, or certain other protected individuals still live in the home.
Estate Recovery Liens are filed after a Medicaid recipient passes away. The state files a claim against the estate during probate to recover costs paid for the recipient’s care. In Florida, this recovery is typically limited to assets that pass through probate.
Which Assets Can Be Subject to Medicaid Liens?
Florida’s estate recovery program can typically target:
- Real property (homes, land) that passes through probate
- Bank accounts and investments that pass through probate
- Personal property of significant value
However, certain assets are often protected from Medicaid recovery, including:
- Property held in properly structured trusts
- Assets with designated beneficiaries (life insurance, retirement accounts)
- Assets held with rights of survivorship
- Homestead property in certain circumstances
The Importance of Timing in Medicaid Planning
The key to protecting assets from Medicaid liens lies in advance planning. Once a person needs long-term care, options become significantly limited due to Medicaid’s five-year look-back period, which penalizes certain asset transfers made within five years of applying for benefits.
As a local elder law attorney, I’ve helped many families navigate these complex rules to protect their hard-earned assets while still qualifying for necessary care. The intersection of Medicaid regulations, estate planning, and property law requires specific knowledge to navigate successfully.
If you have concerns about Medicaid liens or want to protect your assets while planning for long-term care needs, contact the Law Offices of Laurie E. Ohall at (813) 438-8503 to schedule a consultation. With proper planning, you can ensure both quality care and protection for your family’s financial future.