Legal Question of the Day

"I live in Florida and I put my house in a revocable trust.

Is that sufficient to protect Medicaid from taking my residence in the event I am placed in a nursing home?"

Variations of this inquiry often are often addressed to my law firm.

My response to this specific person's concern?

"Generally, a Revocable Trust does help on a limited basis ensure that the property is protected from Medicaid claims by the terms hopefully contained in that document.

For instance, there should be language that specifies your intent to return to your homestead, even if you are living in an assisted-living facility and also should indicate that upon your death automatically passes to exempt heirs, if possible.

For instance, although homestead equity is exempt up only to statutory limits ($730,000 in 2026) while you live, it remains completely exempt if a spouse or minor/disabled child also reside on the property.

Alternatively, you may wish to hold the property through an Enhanced Life Estate Deed (Lady Bird Deed).

This lets you keep control of the home while alive and passes it directly to your Trust, which should specify your beneficiaries upon your demise, thereby avoiding both probate and Medicaid estate recovery."

For more suggestions, please do not hesitate to contact my law firm directly at Pamela@LawPHP.com or visit our website at www.BocaDelrayAttorneyatLaw.com 

What are YOUR thoughts?