How to Protect Your Home from Medicaid in Florida
For many Florida families, the home is the most valuable asset they will ever own. When a parent needs nursing home care and applies for Medicaid, one of the first questions families ask is whether the state can take the house. The answer depends entirely on how the home is titled and what planning was done before the crisis arrived.
Overview
Florida participates in the federal Medicaid Estate Recovery Program, known as MERP, which allows the state to seek repayment of long-term care costs from a deceased Medicaid recipient's estate. This program is governed by Florida Statute §409.9101 and administered by the Agency for Health Care Administration. However, Florida's version of MERP is narrower than many people realize. Florida is what is known as a probate-only recovery state, meaning the state can only pursue assets that pass through the probate process. Assets that transfer outside of probate are entirely beyond AHCA's reach.
Florida's Constitutional Homestead Protection
Florida's homestead protection under Article X, Section 4 of the Florida Constitution is one of the strongest in the country. When a Medicaid recipient dies and the home qualifies as constitutional homestead, it passes directly to a surviving spouse or lineal descendants — such as children or grandchildren — outside of probate. Because AHCA can only file claims against the probate estate, and homestead property bypasses probate in these circumstances, the home is effectively shielded from Medicaid recovery.
Florida Statute §409.9101(4) reinforces this by stating that no debt under the Medicaid recovery program shall be enforced against property that is exempt from creditors under Florida's constitution or laws. This is the legal reason why families with a surviving spouse or children often retain the home even after a parent spent years on Medicaid.
The Lady Bird Deed
The Lady Bird Deed, formally called an enhanced life estate deed and authorized under Florida Statute §689.071, is the most commonly used planning tool for protecting a home from Medicaid recovery. Under a Lady Bird Deed, the owner retains full legal control of the property during their lifetime — including the right to sell, mortgage, or change the beneficiary without anyone else's consent. At death, the property transfers automatically to the named remainder beneficiary and bypasses probate entirely.
Because the property passes outside of probate, AHCA has no mechanism to reach it under Florida's probate-only recovery framework. Equally important, executing a Lady Bird Deed is not considered a disqualifying transfer under Medicaid's five-year lookback period. This means a Lady Bird Deed can be put in place even after a Medicaid application is being planned without triggering a penalty period. These combined qualities make the Lady Bird Deed one of the most efficient tools in Florida Medicaid planning.
The Medicaid Asset Protection Trust
For families who want deeper protection or who own non-homestead real estate, a Medicaid Asset Protection Trust, known as a MAPT, is another option. A MAPT is an irrevocable trust into which the home or other assets are transferred. Once assets are inside the trust, they are no longer owned by the individual and are removed from the Medicaid eligibility calculation. The trust also bypasses probate, so assets are protected from estate recovery as well.
The critical requirement is timing. A MAPT must be funded at least five years before submitting a Medicaid application. Any transfer within that five-year window triggers a penalty period that delays eligibility. For this reason, a MAPT works best as part of early planning, not as a last-minute response to a medical crisis. As of 2025, a Florida home with equity below $730,000 is generally treated as an exempt asset for Medicaid eligibility purposes, though this threshold is adjusted periodically and should be verified before relying on it.
Ready to Get Started?
Understanding how Florida's Medicaid recovery rules interact with homestead law and deed planning is essential for any family thinking about long-term care. The planning tools exist, but they must be in place before the need arises. For related reading, see the Karia Law estate planning overview page at karialaw.com.
Frequently Asked Questions
Florida's Medicaid Estate Recovery Program can only seek repayment from assets that pass through probate. If your home is constitutional homestead and passes to a surviving spouse or your children, it transfers outside of probate and AHCA cannot claim it. The right planning structure eliminates most exposure for most families.
A Lady Bird Deed is a type of deed that lets you keep full control of your home during your lifetime while naming a beneficiary to receive it at death, outside of probate. Because the home bypasses probate, Florida's Medicaid recovery program cannot reach it. Executing a Lady Bird Deed is also not counted as a transfer for purposes of the five-year lookback period, making it a highly efficient planning tool.
For a Medicaid Asset Protection Trust, assets must be transferred at least five years before applying for Medicaid to avoid a penalty period. A Lady Bird Deed on the home can be executed without triggering a lookback penalty at any time. Early planning always provides the most flexibility, but the right tool depends on the specific situation.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. It does not create an attorney-client relationship. Laws vary and individual circumstances differ. Consult a licensed Florida estate planning attorney for advice specific to your situation. Tejus Karia, Esq. is a member of The Florida Bar.
- Can Florida take my house if I go on Medicaid?
- What is a Lady Bird Deed and how does it protect my home from Medicaid?
- How long before I need Medicaid do I need to do planning?