Asset Protection from Nursing Home Costs in Florida

The concern most families have

When a loved one needs long-term nursing home care, families often fear they will have to spend everything they've saved before any help arrives. That fear is understandable — and not unfounded. But there are legal strategies that can protect a meaningful portion of your family's assets, even when care is already underway.

Which assets does Florida Medicaid count?

Florida Medicaid divides assets into two categories: countable and exempt.

Exempt assets (do not count against eligibility) typically include:

• Your primary home, up to the current equity limit, if you intend to return or a spouse lives there
• One vehicle
• Personal belongings and household items
• Life insurance with no cash surrender value
• Prepaid funeral arrangements up to certain limits
• Certain retirement accounts (rules vary)

Countable assets include savings accounts, CDs, stocks, bonds, mutual funds, and most real estate beyond your primary home. These must generally be spent down before Medicaid eligibility begins.

Spousal protection rules in Florida

If one spouse needs nursing home care and the other does not, Florida follows federal community spouse protection rules. The community spouse (the one staying home) is allowed to keep:

• A portion of the couple's combined assets, called the Community Spouse Resource Allowance, up to the current federal/state limit
• Their own income
• The family home
• One vehicle

An elder law attorney can help structure the couple's assets to make the most of these protections.

Protecting the family home

The family home is typically exempt while you are living in it or plan to return, or while a spouse lives there. But after death, Florida's Medicaid estate recovery program can seek reimbursement from the estate, potentially including the home. Planning done in advance — such as placing the home in a properly structured trust — can protect it from estate recovery.

Can trusts protect assets?

Certain irrevocable trusts, if established and funded at least five years before you apply for Medicaid, can place assets outside the Medicaid lookback window. A revocable living trust does not provide this protection — Medicaid still counts those assets.

Whether a trust strategy makes sense depends on your financial situation, family structure, and timeline. An elder law attorney can assess your specific circumstances and advise accordingly.

Frequently asked questions

Which assets are exempt from Florida Medicaid?

Florida Medicaid exempt assets may include your primary home up to the current equity limit, one vehicle, personal belongings, life insurance with no cash value, and certain prepaid funeral arrangements.

Can a married couple protect assets from nursing home costs in Florida?

Yes. Florida follows federal spousal protection rules. The community spouse is allowed to keep a significant portion of the couple's assets plus their own income. An elder law attorney can help structure assets to maximize spousal protection.

Can a trust protect assets from nursing home costs?

Certain irrevocable trusts, if properly structured and funded at least five years before applying for Medicaid, can protect assets. Revocable living trusts do not protect assets from Medicaid.