The short answer is "no" with a few caveats.
First, your Florida homestead is not a countable asset for Medicaid purposes unless it is worth over $603,000 (2021). If you are married, there is no cap in the value to the homestead. This means that you are allowed to own a home if you are in the nursing home. Further, even if you stay in the nursing home for a long period of time, you will never lose your homestead. The family can hold onto the home for years, for instance, and it will not become a countable asset for Medicaid purposes. We have another page on the financial requirements for Florida Medicaid.
When you die, the state of Florida has a claim in your estate for what they paid to assist you with Medicaid. Importantly, your homestead property is not subject to your creditors, even the state of Florida, so "the state" does not take it, even upon your death, with a few exceptions.
As with all legal rules, there is a good bit of nuance here and there that can get an unprepared family in trouble, so you should always seek out legal advice to make sure your case would not have any problems. For instance, problems can occur if you:
- rent the homestead property
- own a co-operative share (such as Seminole Gardens)
- or the last will and testaments makes the homestead property be sold upon death.
If you want to learn more about your homestead and how it interacts with Medicaid, please download our free guide to protecting your Florida Homestead property.
What About Selling the Home if the Elder is on Medicaid?
If your elder is on Medicaid already, the home can be sold and the proceeds protected under many circumstances. It is a common misperception that Medicaid or the nursing home will take the proceeds from the sale. Learn more about protecing your home from the nursing home here.
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