Can I Go on Medicaid and Still Keep My Home?
One of the most common concerns we hear from clients during long-term care planning is whether they can qualify for Medicaid and still keep their home. It’s an understandable worry—your home is often your most valuable asset, and it may hold a lifetime of memories. Fortunately, the answer is yes, in many cases, you can go on Medicaid and still keep your home. However, there are important rules and potential pitfalls to understand to protect your home both during your lifetime and after. Learn more below, and contact Shalloway & Shalloway, P.A., for personalized assistance from a dedicated and experienced West Palm Beach Medicaid planning attorney.
Medicaid Eligibility and the Home Exemption
Medicaid is a needs-based program, which means eligibility is only available to applicants with low incomes and assets. In Florida, an individual applying for long-term care Medicaid in 2025 must have no more than $2,000 in countable assets. However, not all assets count toward that limit. The homestead is often considered a non-countable or exempt asset, meaning you can still qualify for Medicaid even if you own your home.
To be considered exempt, the home must be the applicant’s primary residence. If you are living in your home or intend to return to it after a stay in a nursing home or assisted living facility, the home may be excluded from the asset calculation. There is also an equity limit on the value of the home. As of 2025, that limit in Florida is $730,000. If the home’s equity is below this threshold, it generally won’t disqualify you from Medicaid.
When the Home Might Not Be Protected
The exemption only applies while you are alive and under certain conditions. If you move into a nursing home and there is no reasonable expectation of returning home, the state could deem your home no longer exempt. Additionally, if you sell the home, the proceeds will become countable assets, which could make you ineligible for Medicaid unless those funds are appropriately spent down or protected.
It’s also important to understand the concept of Medicaid estate recovery. Although your home may be protected while you are alive and receiving Medicaid benefits, the state has the right to seek reimbursement from your estate after your death. This means that unless steps are taken to protect the home, it could be subject to a claim from the Florida Medicaid Estate Recovery Program, which could force the sale of the property to repay the cost of your care.
How to Protect the Home from Medicaid Recovery
Fortunately, there are estate planning tools and legal strategies that can help protect your home from Medicaid estate recovery. One of the most effective tools in Florida is the Enhanced Life Estate Deed, also known as a Lady Bird Deed. This deed allows you to retain full ownership and control of your home during your lifetime while naming one or more beneficiaries who will automatically inherit the property upon your death—bypassing probate and avoiding Medicaid estate recovery.
Unlike a traditional life estate deed, a Lady Bird Deed gives you the right to sell, mortgage, or otherwise deal with the property as you please while you’re alive. It also does not count as a gift for Medicaid eligibility purposes, which makes it a popular and powerful tool in elder law and Medicaid planning.
Another approach may involve placing the home in an irrevocable trust, though this requires careful planning and must be done at least five years before applying for Medicaid to avoid penalties. This strategy may be appropriate in certain circumstances, especially if you are looking to protect additional assets or structure a broader estate plan.
What If a Spouse or Dependent Lives in the Home?
If you are married and your spouse continues to live in the home after you move to a nursing facility, the property will remain exempt, regardless of its equity value. The same exemption applies if a disabled child, a child under age 21, or a caretaker child lives in the home. In these situations, Medicaid will not count the home as an asset, and it typically won’t be subject to estate recovery as long as the exempt individual continues to reside there.
However, the situation can change if the surviving spouse or dependent later passes away or moves out. That’s why it’s essential to take a proactive approach to planning for these possibilities ahead of time.
Consult with a West Palm Beach Elder Law Attorney at Shalloway & Shalloway, P.A.
The intersection of Medicaid rules, estate planning, and asset protection is complicated and highly specific to your unique circumstances. A misstep—such as transferring your home without the proper legal structure or misunderstanding Florida’s homestead protections—can lead to Medicaid ineligibility or expose your home to recovery after death.
At Shalloway & Shalloway, P.A., we help families in West Palm Beach protect their assets while securing the care they need. Whether you’re planning for your own future or helping a loved one navigate the Medicaid system, we’ll work with you to develop a personalized strategy that protects your home and your legacy.
Contact us today to schedule a consultation and learn how we can help you go on Medicaid and keep your home.
