If you or a loved one needs long-term care in Florida, the question keeping you up at night is probably this: Can Medicaid take my house?
The answer depends on timing, planning, and who survives you. Florida has some of the strongest homestead protections in the country, but those protections are not automatic and they do not cover every situation. This guide explains exactly when Medicaid can and cannot reach your home — and what you can do right now to protect it.
Can Medicaid Take Your House While You Are Alive?
No. While you are alive, your primary residence is an exempt asset for Medicaid eligibility purposes. This means your home does not count toward Medicaid’s $2,000 countable asset limit, and Medicaid cannot force you to sell it or place a lien on it while you live there.
Under federal law (42 U.S.C. § 1396p(a)), Medicaid cannot place a lien on homestead property while any of the following people reside there:
- The Medicaid recipient
- A spouse
- A child under age 21
- A blind or permanently disabled child of any age
- A sibling with an equity interest who lived there before the recipient’s institutionalization
The Home Equity Cap
There is one important limit: For 2026, your home equity cannot exceed $752,000 (fair market value minus any mortgage balance). If your equity exceeds this cap, the home loses its exempt status and Medicaid may deny eligibility.
Exception: If a spouse, child under 21, or blind/disabled child lives in the home, there is no equity cap — the home remains fully exempt regardless of value.
The Intent-to-Return Rule
When a Medicaid applicant enters a nursing home, the home stays exempt as long as they express an intent to return home — even if that return is medically unlikely. Florida’s Department of Children and Families (DCF) only requires a stated intention, not a realistic probability.
To preserve this protection:
- File a written statement with DCF declaring your intent to return
- Keep utilities, mail delivery, and personal property at the home
- Do not execute a long-term rental lease (this signals abandonment)
- Maintain homeowner’s insurance and property tax payments
When Medicaid CAN Take Your House: After Death
This is where the real risk lives. Florida participates in the Medicaid Estate Recovery Program (MERP), administered by the Agency for Health Care Administration (AHCA). Under Fla. Stat. § 409.9101, AHCA can file a creditor claim against the estate of any deceased Medicaid recipient who:
- Received Medicaid benefits on or after August 31, 1993
- Was age 55 or older when services were provided
The recoverable amount is the total amount Medicaid paid for nursing home care, home and community-based services, hospital costs, and prescription drugs connected to institutional care. For many families, this can be tens or even hundreds of thousands of dollars.
How the Claim Works in Probate
AHCA’s claim is enforced through the probate process. The personal representative must notify AHCA during the creditor claims period under Fla. Stat. § 733.2121. AHCA then files its claim, and the personal representative must resolve it before distributing assets to heirs.
Critical distinction: MERP can only recover from assets that pass through probate. Assets that bypass probate — through a Lady Bird deed, joint tenancy with right of survivorship, properly structured trusts, or beneficiary designations — are outside MERP’s reach.
When Medicaid Cannot Touch Your House — Even After Death
Under Fla. Stat. § 409.9101, AHCA must abandon its claim entirely if the decedent is survived by any of the following:
| Protected Survivor | Requirement |
|---|---|
| Surviving spouse | Any surviving spouse — does not need to live in the home |
| Child under 21 | Any biological or legally adopted child |
| Blind child | Any age — must meet SSA definition of blindness |
| Permanently disabled child | Any age — must be determined disabled by SSA |
These are absolute bars — not deferrals. If any of these survivors exist at the time of the Medicaid recipient’s death, AHCA cannot recover anything from the estate.
Additionally, Florida’s constitutional homestead exemption (Art. X, § 4, Fla. Const.) provides additional protection. Because § 409.9101(7) prohibits AHCA from enforcing recovery against property exempt under the Florida Constitution, a home that qualifies as homestead at death and passes to qualifying heirs (spouse or lineal descendants) is protected from MERP.
The Hardship Waiver
Even when no absolute bar exists, heirs can request a hardship waiver from AHCA. Recovery may be waived if enforcement would cause undue hardship. Recognized grounds include:
- An heir has lived in the home as their primary residence for 12+ consecutive months before and after the death
- Recovery would deprive the heir of necessary food, clothing, shelter, or medical care
- A caregiver child or sibling provided care that demonstrably delayed nursing home placement
- The sale proceeds would not exceed the costs of sale (the property has no net equity)
Note: AHCA’s position is that hardship is not established merely because recovery prevents someone from receiving an inheritance.
6 Strategies to Protect Your House from Medicaid
1. Lady Bird Deed (Enhanced Life Estate Deed)
The most widely used Medicaid planning tool for Florida homeowners. A Lady Bird deed transfers your home to a beneficiary at death while you retain full ownership and control during your lifetime — including the right to sell, mortgage, or revoke the deed without the beneficiary’s consent.
Why it works:
- No lookback penalty — Florida’s ESS Policy Manual § 1640.0613.01 specifically provides that a Lady Bird deed is not a transfer for Medicaid purposes. You can execute one today and apply for Medicaid immediately.
- Bypasses probate — the property transfers automatically at death, so MERP has no access
- Preserves homestead exemption and Save Our Homes property tax cap
- No gift tax issues — the retained life estate means the gift is incomplete during your lifetime
- Fully revocable — you stay in complete control
2. Irrevocable Medicaid Asset Protection Trust (MAPT)
A Medicaid Asset Protection Trust is an irrevocable trust that holds title to your home. Because you transfer ownership, the home is no longer yours — but the transfer triggers the 60-month lookback period. You must fund the trust at least 5 years before applying for Medicaid.
Best for families with significant assets who can plan well in advance. You typically retain the right to live in the home and receive rental income.
3. Transfer to a Spouse
Transferring the home to a community spouse (the healthy spouse) is never penalized under the lookback rules. Spousal transfers are always exempt. After transfer, the community spouse can execute a Lady Bird deed or MAPT for additional protection.
And remember: if a surviving spouse exists at death, AHCA cannot pursue estate recovery at all.
4. Caretaker Child Exception
You can transfer your home outright to an adult child with no lookback penalty if:
- The child lived in the home for at least 2 years immediately before your institutionalization, AND
- The child provided care that delayed your need for nursing home placement
Documentation is critical: you need a physician letter confirming the care provided and that without it, institutional placement would have been necessary sooner.
5. Sibling Exception
A transfer to a sibling is exempt from the lookback if the sibling has an equity interest in the home AND lived there for at least 1 year immediately before your institutionalization. No caregiver requirement — just co-residency and equity.
6. Ensure Proper Estate Planning
Even without executing a specific Medicaid planning strategy, making sure your home passes to the right people through a proper estate plan is essential. A home that passes through probate to a non-qualifying heir may lose homestead protection. Work with a Medicaid planning attorney to ensure your estate plan, deed, and beneficiary designations are all coordinated.
Common Mistakes That Put Your Home at Risk
Quitclaiming the House to a Child
This is the most common — and most dangerous — mistake. Deeding your home to a child (outside the caretaker exception) is a gift that triggers the lookback period. If you apply for Medicaid within 5 years, the penalty could be catastrophic: a $300,000 home divided by the 2026 penalty divisor of $10,645/month = 28 months of Medicaid ineligibility. Use a Lady Bird deed instead — it accomplishes the same goal with zero penalty.
Adding a Child as Co-Owner
Adding a child to the deed as a joint tenant triggers a lookback penalty for the value of the transferred interest (typically 50% of the home). It also exposes your home to the child’s creditors and potential divorce proceedings.
Relying on a Revocable Living Trust
A revocable living trust does not protect your home from Medicaid. Because you retain control of the trust assets, DCF counts them as available resources. And in Florida, MERP can reach revocable trust assets after death.
Waiting Until the Crisis
Most planning strategies require years of lead time. The Lady Bird deed is the only major tool that works immediately. If a parent is already in a nursing home, your options are limited — but not zero. A Medicaid crisis planning attorney can evaluate what strategies are still available.
Key Florida Medicaid Numbers for 2026
| Parameter | 2026 Amount |
|---|---|
| Home equity cap (single applicant) | $752,000 |
| Individual asset limit | $2,000 |
| Community Spouse Resource Allowance (CSRA) | $162,660 |
| Monthly income cap (ICP/QIT threshold) | $2,982 |
| Lookback period | 60 months (5 years) |
| Penalty divisor (transfer penalty) | $10,645/month |
Protect Your Home — Talk to a Medicaid Planning Attorney
Your home is likely your family’s most valuable asset. Whether you are planning years ahead or dealing with a parent who just entered a nursing home, the right legal strategy can mean the difference between protecting your home and losing it to Medicaid estate recovery.
At Zoecklein Law, P.A., our attorneys have helped hundreds of Florida families protect their homes through Lady Bird deeds, Medicaid asset protection trusts, and crisis planning strategies. We offer a free consultation to evaluate your situation and explain your options.
Call us today at (813) 501-5071 or schedule a free consultation online.
