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After a loved one passes away, the last thing a family expects is a claim from the state of Florida seeking to recover the cost of their Medicaid benefits. But under Florida Statute § 409.910, the Agency for Health Care Administration (AHCA) has the right to recover Medicaid payments from the estates of recipients who received benefits on or after their 55th birthday. Understanding how this process works — and what protections exist — is essential for preserving your family’s inheritance.
Medicaid estate recovery is not a penalty. It is a federal requirement that every state, including Florida, must implement. The state pays for nursing home care and other long-term services, and after the recipient’s death, it seeks to recover those costs from whatever assets remain. For families who spent years caring for a parent and expected to inherit the home, this claim can feel devastating.
AHCA files a claim against the deceased recipient’s estate during the probate process. The claim covers the total amount of Medicaid benefits paid on behalf of the recipient from age 55 onward. This can amount to hundreds of thousands of dollars — at over $11,000 per month in nursing home costs for 2025, even two years of care totals more than $270,000.
The claim is filed as a creditor claim under Florida Statute § 733.702 and must be filed within three months of the first publication of the notice to creditors, or 30 days after service of the notice, whichever is later. However, AHCA may have extended time periods under certain circumstances, and the state often files claims promptly once it becomes aware of a probate proceeding.
Recovery can reach beyond traditional probate assets. Florida law allows AHCA to pursue assets in revocable trusts, joint accounts (to the extent of the recipient’s contribution), and other property that would have been available to pay the recipient’s debts. The scope of this recovery authority has expanded over the years through both legislation and court interpretation.
Florida Probate
Federal and state law provide several important protections that limit or prevent Medicaid estate recovery in specific circumstances.
The most significant protection applies when a surviving spouse is alive. AHCA cannot recover from the estate while a surviving spouse is living, regardless of the estate’s value. This protection continues until the surviving spouse’s death, at which point AHCA may pursue a claim against the surviving spouse’s estate for the original recipient’s Medicaid costs.
Recovery is also barred when a disabled child (of any age) would inherit the property, or when a child under age 21 survives the recipient. Additionally, if a child over 21 lived in the home for at least two years before the parent entered the nursing home and provided care that delayed institutionalization, the home may be protected through the caregiver child exemption.
The undue hardship waiver provides another potential defense. If recovery would deprive a survivor of housing, food, clothing, or necessary medical care, the family can petition for a hardship waiver. This waiver is discretionary, and approval requires demonstrating that enforcement would cause genuine hardship — not merely inconvenience or reduced inheritance.
The most effective defense against Medicaid estate recovery is advance planning. Assets that do not pass through probate or are not otherwise reachable by AHCA are protected from recovery claims.
Lady Bird deeds (enhanced life estate deeds) transfer the home directly to beneficiaries upon death without passing through probate. Because the property is not part of the probate estate, it is generally beyond AHCA’s recovery reach. This is one of the most commonly used tools in Florida Medicaid planning.
Irrevocable trusts can remove assets from the estate entirely, but only if they are established more than five years before the Medicaid application (outside the look-back period). Life insurance with named beneficiaries bypasses probate and is not subject to estate recovery. Retirement accounts with designated beneficiaries also pass outside probate.
Lady Bird Deed Florida
When a Medicaid recipient dies, the personal representative of the estate must notify all known creditors, including AHCA. Failing to provide proper notice can extend AHCA’s claim period and create personal liability for the personal representative.
The personal representative should never distribute estate assets before resolving AHCA’s claim. Under Florida’s abatement rules, Medicaid recovery claims have priority over bequests to beneficiaries. Distributing assets and then facing an AHCA claim can result in the personal representative being personally responsible for the amount distributed.
In some cases, negotiating with AHCA can reduce the recovery amount. If the estate’s value is less than the total Medicaid claim — which is common — AHCA will accept whatever the estate can pay. If assets are partially exempt or contested, an attorney can negotiate the scope of recovery based on the specific circumstances.
FLORIDA PROBATE ADMINISTRATION – DEALING WITH MEDICAID (AHCA)
Estate recovery planning is most effective when done before a Medicaid application is filed — ideally years in advance. But even after a loved one is receiving Medicaid, certain steps can still protect assets from future recovery. Ensuring beneficiary designations are current, structuring the homestead with a Lady Bird deed, and properly titling accounts can all reduce the estate’s exposure.
At Zoecklein Law, P.A., we help families throughout Tampa Bay plan proactively for estate recovery and defend against AHCA claims during probate. Whether your parent is considering Medicaid, currently receiving benefits, or has recently passed, we can evaluate your family’s situation and protect what matters most.
Protect Your Family’s Inheritance — Schedule a Medicaid Planning Consultation
Schedule your consultation online or call (877) 206-0022. Se Habla Español.
