How to Protect Your Home from Medicaid in Florida: What You Need to Know
If you're planning for long-term care in Florida, one question probably keeps you up at night: "Will Medicaid take my house?"
It's a genuine concern. For most people, their home represents their largest asset—often decades of hard work, memories, and financial security. The thought of losing it to pay for nursing home care can be overwhelming.
Let me help you separate fact from fiction.
Florida Is Different (And That's Good News)
Before we go any further, you need to know something important: Florida handles Medicaid and home protection differently than most other states. Many of the horror stories you've heard about Medicaid seizing homes? They often come from other states with different rules.
Florida actually has some of the strongest homestead protections in the country. If you've heard conflicting information, that's probably why.
Can You Own a Home and Still Qualify for Medicaid?
Yes. Absolutely.
This is the biggest myth I encounter. People think that because Medicaid has a $2,000 asset limit, they can't own a home and qualify for benefits. That's simply not true in Florida.
As of 2026, there is a $752,000 equity limit on home ownership for single individuals seeking Medicaid. But here's what most people don't know:
This equity limit doesn't apply if:
- You're married, OR
- You have a dependent child living in the house, OR
- You have a disabled child living in the house
If any of these situations apply to you, there's no equity limit at all. Your home could be worth $5 million, and technically, you can still be eligible for Medicaid (assuming you meet all other requirements).
For single individuals, the equity limit matters—but it's important to understand what "equity" actually means.
Understanding Home Equity vs. Home Value
The value of your house and the equity in your house are two different things.
Here's a simple example: Let's say your house is worth $800,000, but you still have a $100,000 mortgage. Your equity is $700,000—which falls under the $752,000 limit. You're fine.
However, if you own your home outright (no mortgage) and it's worth more than $752,000, and you're single, then we need to have a conversation about planning strategies. The good news? There are ways to handle this situation.
Will Medicaid Take Your Home While You're Living?
No.
As long as you maintain an intent to return home, you can keep your primary residence—even if you're in a nursing facility.
Florida law assumes you have an intent to return home. Even if you're unconscious in a nursing facility and realistically will never leave, the standard is simple: If a medical miracle occurred and you recovered enough to go home, would you? If the answer is yes, your home is protected.
Medicaid cannot take your home from you while you're alive, as long as you meet the other income and asset requirements for eligibility.
What Happens to Your Home After You Pass Away?
This is where things get more complicated—but Florida's strong homestead laws still work in your favor.
The Probate Problem
Medicaid typically only engages in estate recovery when there's a probate case. Here's how it works:
If you're over 55 and pass away in Florida relying only on a will, your estate goes through probate. Every judge in Florida is required to notify the state about probate cases. If Medicaid has a lien (because you received benefits), they can submit a claim as a creditor.
The solution? Avoid probate whenever possible.
Two Ways to Avoid Probate with Your Home
- Revocable Living Trust - Your home is placed in a trust that passes to your beneficiaries without court involvement
- Ladybird Deed - A special type of deed that allows you to retain full control of your home during your lifetime while automatically transferring it to your beneficiaries when you pass away
Both strategies keep your home out of probate court, which means Medicaid doesn't get the opportunity to file a claim.
If You Do Go Through Probate
Even if you rely on a will and your estate goes through probate, Florida's homestead protections can still save your home—but only under certain conditions.
If your home is going to a qualified heir (think children or grandchildren, not charities or friends), then even if Medicaid submits a claim, that claim will be defeated by Florida's homestead laws.
Under Florida's homestead rules, creditors—including Medicaid—have no claim on a homestead property passing to qualified heirs.
Important exception: This protection only applies to your homestead property. Other assets that go through probate may not have the same protection. That's why it's so important to set up pay-on-death beneficiary designations for:
- Life insurance policies
- 401(k) and retirement accounts
- Bank accounts
- Other financial assets
What If You Want to Sell Your Home?
This is where things get tricky.
When you sell your home while on Medicaid, you're converting a protected asset (your house) into an unprotected asset (cash). You can't just have $200,000 or $300,000 sitting in your bank account—even if it came from selling your home—and continue to receive Medicaid benefits.
But here's the good news: There are legal and ethical strategies to protect the proceeds from the sale of your home. I work with clients regularly who come into $200,000, $300,000, $400,000, or even $500,000 from home sales, and we can help them maintain their Medicaid benefits while either greatly minimizing or completely eliminating the potential for Medicaid estate recovery.
The Bottom Line
Your home is protected in Florida—far more than in most other states. But protection doesn't happen automatically. It requires proper planning.
Here's what you need to remember:
- You CAN own a home and qualify for Medicaid in Florida
- Medicaid CANNOT take your home while you're alive
- After you pass away, your home is protected if it goes to qualified heirs
- Avoiding probate gives you the strongest protection
- If you need to sell your home, there are strategies to protect those proceeds
The key is planning ahead. Waiting until you're in crisis mode limits your options.
Ready to Protect Your Home?
Whether you're just starting to think about long-term care planning or you're facing an immediate situation, having the right guidance makes all the difference.
Resources for Florida Residents:
📚 Get the Book: How Medicaid Can Pay for Some or All of Your Long-Term Care Expenses - A comprehensive guide written specifically for Florida residents
🌐 Visit Our Websites:
📞 Schedule a Consultation: If you're anywhere in Florida and want to protect your home, qualify for Medicaid, avoid probate, or protect your assets, we're here to help.
Your home represents more than just financial value—it's your security, your memories, and your legacy. With proper planning, you can protect it for yourself and for the people you love.
The information in this article is specific to Florida law and is for educational purposes only. Every situation is unique, and this should not be considered legal advice. For guidance on your specific circumstances, please consult with a qualified elder law attorney in Florida.
