Learn how Florida families can safeguard their home and assets from Medicaid Estate Recovery with strategies like homestead exemption, living trusts, and probate planning.
When a loved one passes away, the last thing families want is a surprise bill from the state. But that’s exactly what can happen if the deceased received long-term care through Medicaid. In Florida, the Agency for Health Care Administration (AHCA) may file a claim against the decedent’s estate to recover those costs. This process is known as Medicaid Estate Recovery.
The good news? With proper planning and legal strategy, you can limit or eliminate these claims and protect your family’s legacy.
What Is Medicaid Estate Recovery?
Florida’s Medicaid Estate Recovery program allows the state to seek reimbursement for Medicaid benefits paid on behalf of individuals age 55 or older, typically for nursing home or home health care services. These claims are filed during probate and must be paid before assets can be distributed to heirs.
What Assets Are at Risk?
Only assets subject to probate can be targeted by Medicaid recovery. These include:
- Real estate in the decedent’s name alone
- Bank accounts with no beneficiaries
- Cars and other titled property
- Personal items of significant value
Protected Assets
Not all assets are vulnerable. Florida law and proper estate planning can safeguard:
- Homestead property left to heirs or a surviving spouse
- Assets in a living trust
- Jointly owned property with rights of survivorship
- Life insurance with named beneficiaries
- Retirement accounts with named beneficiaries
A Real-Life Example: Negotiating a Medicaid Claim
At Velez Legal Practice, PLLC, we recently handled a probate case where AHCA filed a claim for over $193,000. The only asset in the estate was the decedent’s homestead, which passed to heirs—except for a 5% interest that went to a non-family member.
Thanks to Florida’s homestead exemption laws, we negotiated with AHCA to limit the claim to only 5% of the net proceeds from a future sale of the property, after closing costs. The rest of the home’s value remained protected for the family.
Legal Strategies to Protect Your Estate
- Establish a Living Trust: Keeps assets out of probate.
- Use Transfer-on-Death Deeds: For homes and bank accounts.
- Maintain Proper Beneficiaries: On life insurance and retirement plans.
- Plan Ahead: Gifting or long-term care insurance can reduce exposure.
- Consult an Attorney: A Florida estate planning lawyer can identify and structure your assets properly.
Let Us Help You Secure Your Legacy
No one should lose their home or savings to Medicaid claims they didn’t expect. At Velez Legal Practice, we specialize in helping families across Florida plan ahead, defend against improper estate recovery claims, and keep what matters most.
Contact us today to schedule a personalized strategy session.
Your Trusted Attorney,
Amarillis Velez Diaz
Velez Legal Practice, PLLC
Estate Planning | Probate | Medicaid Strategy
www.velezlegalpractice.com
